London's Silver Price Benchmark May Be Threatened by Credibility

 
MAY 1, 2017

ORIGINAL SOURCE: Fear of regulation causes big swings in London's silver benchmark byPeter Hobson and Jan Harvey of investing.com/on 4/27/2017 


Silver producers, consumers, including jewelers and electronics firms, use the benchmark around the world to price their contracts in the multi-billion-dollar a day trading.

The main problems are low volumes and the reluctance of banks that execute trades to add liquidity by buying or selling silver during the auction to ensure the benchmark stayed close to the spot price, that may look like manipulation because of the recent scandal of these banks manipulating Libor

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