What is the silver fix?

[smokestack]

Hi everyone, as most of you know i am quite new to PM collecting. So could someone please explain to me what this silverfix is that i keep hearing about please?

[Carpe Diem]

It's a benchmark for setting the price of silver performed by 3 banks, one of which is Deutsche Bank.  DB recently decided to leave the group which "sets" the silver price at noon weekdays in London and so this means that next month it will come to an end and there will be a supposedly more transparent way that the prices will be fixed / set.  It has been going for around 120 years so next month is pretty historic, but it's anyone's guess as to what the effects of this "new system" will be, likely more of the same.

[smokestack]

Thank you Carpe Diem(love yor name,very well suited to this forum), i am still not sure i fully grasp what this means, maybe it is beyond my comprehension, i am a bit of a non acedemic, but they do say ignorance is bliss .

[Carpe Diem]

It's not beyond your grasp mate, I'm no egg-head either, you just need to do a bit more digging.  

 

have a butcher's at this for a bit more background, which hints at the "20 (or more) pending class action lawsuits by regulators in the UK and Germany".  That answers the question around why it's possibly coming to an end.

 

The graphic was taken from here

 

 

 

[smokestack]

Thank you for your kind response to my question Carpe Diem, but i just cannot seem to grasp what they mean by all this, this is not the first time i have felt like i might not belong round here and people seem to be talking in another language, thanks for trying though, take care my freind.

[Carpe Diem]

Just to add, by "fixing" they mean that banks belonging to this particular group will say how much silver they want to trade in the day, once those volumes of buying and selling are known then orders for some of those quantities are taken and then the spot price is fixed after that trading).  I also need to swot up on this part as it's hazy for me too, but that's the general idea.

 

Maybe someone else here can enlighten us if I've got that part wrong.  

 

Ps - you comment about not belonging here, and excuse my French, is bullsh*t.  You're here because you signed up voluntarily to interact with like-minded stackers/collectors and have a bit of banter on the way, so enjoy the ride and keep on posting. 

[HighlandTiger]

@Smokestack. Don't worry, 6 months ago I'd never heard of the Silver Fix either. Basically in laymans terms, its a bunch of suits in a posh office in London, who get together and decided what the price is going to be twice a day. Although they let their mates know in advance what they are going to do, so they can all make a bit of cash from insider trading...............Allegedly....

[SilverPirate]

My version of silver fix, is the fix i get when i scour the internet and spend my money on a silver coin and get that silver fix feeling.

[smokestack]

Thank you for all the kind words guys, i have had some bad experiences on forums in the past as i think i ,entioned when i first joined. So i  tend to be careful what i say in case someone decides to respond badly.

[SilverPirate]

I don't think i have seen anything bad yet on here, it will happen one day, but for now i think we have a great bunch of like minded stackers.

[ChrisSilver]

Thank you for all the kind words guys, i have had some bad experiences on forums in the past as i think i ,entioned when i first joined. So i tend to be careful what i say in case someone decides to respond badly.

I know how you feel, I mentioned on another forum that tapatalk would be a good improvement and the people there all took it as a personal attack against their forum setup. I got shot down completely. Luckily everyone on this forum is friendly and we can have a pleasant structured debate about a topic even if people have a disagreeing opinion about the subject.

From investopedia.com:

Definition of 'London Spot Fix'

A price per ounce for each of the precious metals (gold, silver, platinum and palladium) determined daily at 10:30 and 15:00 GMT by a brief conference call among the five members of the London Gold Pool (Scotia-Mocatta, Barclays Capital, Deutsche Bank, HSBC and Société Générale). The London spot fix price is the price fixed at the moment when the conference call terminates.

[garthy]

These banks basically have the power to decide if the metals are undervalued or overvalued, usually they decide overvalued and smash the price, if you see the price drop off a cliff around 10 or 3 that's usually them, we''ll see if things change next month when the silver fix finishes, we may see a disconnect between gold and silver, who knows?

[Danny-boy]

Thank you for all the kind words guys, i have had some bad experiences on forums in the past as i think i ,entioned when i first joined. So i tend to be careful what i say in case someone decides to respond badly.

SS, don't worry about anyone else mate, some of this technical stuff is above my head too, and many other peoples.

It's all a big learning curve, and the vast majority of us are still learning too.

[motorbikez]

 "new system" will be, likely more of the same.

 

That's how I see it.

[motorbikez]

 i have felt like i might not belong round here and people seem to be talking in another language, thanks for trying though, take care my freind.

 

Bollocks you are a stacker/collector like everyone else on here with a common interest in coins and PMs,nobody knows everything about coin collecting stock market etc and we are all here to learn, share and enjoy our hobby.

 

If people are that clever and know everything there is no need for them to be here,enjoy and learn matey.

[Dave]

Basic way to look at it , 3 men sitting in a room each with a large box of green apples , one says I can buy more of these apples for 10p each, and sell for 15p each , next one says I can buy for 12p and sell for 16p. And last one says I can buy for 10p , but I have not any buyers yet . Then they decide to set the buy price between 10- 12p and to sell them at between 15-16p. Trouble is they all own very big orchards , and it's illegal to buy your apples from anyone else so they have cornered the market , so other growers have to sell to them ,at that price, and buyers have to buy at that price

[smokestack]

Wow, thanks for making me feel like i am a valued part of the forum guys, it means a lot to me. I wish i had the power to decide my gas and electric bills were too expensive and then decide to make them cheaper as and when i felt like it . Also i would like to point out that in no way have i felt like anyone on here has treated me badly, its my own feelings of being not very educated that sometimes make me feel a bit insecure.