The LBMA silver price is the global benchmark for silver traded in London. An electronic auction sets it once each London business day, starting at 12:00 noon UK time. Bullion banks, refiners, miners and many investment funds use it as the reference price in their contracts. This guide explains who runs the auction, how it works, and why the benchmark often differs from the silver price you see moving on a chart.
What is the LBMA silver price?
The LBMA silver price is the benchmark price for spot, unallocated silver delivered in London. “Unallocated” means the buyer owns a claim on a quantity of silver held by a bank, rather than specific numbered bars. “Spot” means the trade settles now, not at a future date.
Two organisations share responsibility for it. The London Bullion Market Association (LBMA) owns the benchmark and its intellectual property. Meanwhile, ICE Benchmark Administration (IBA), part of Intercontinental Exchange, runs the auction platform and sets the methodology. In addition, IBA handles the day-to-day administration and governance. Anyone who wants to use the benchmark in pricing or valuation needs a usage licence from IBA.
How the LBMA silver price auction works
Each London business day, the auction opens at 12:00 noon UK time. Direct participants, mostly large bullion banks, enter buy and sell orders on the electronic platform. They trade for their own books and for their clients.
The auction runs in rounds. At the start of each round, the system shows a price. Participants then state how much silver they would buy or sell at that price. If buying and selling interest is too far apart, the system moves the price and starts a new round. Once the two sides are close enough, the auction ends. As a result, the price of the final round becomes the LBMA silver price for that day.
Price discovery happens in US dollars per troy ounce. After the final round, IBA converts the result into British pounds and euros, using the exchange rates at the moment the auction closed. Because the auction can take several rounds, the benchmark has no fixed publication time. Instead, IBA releases it as soon as the final round ends.
LBMA silver price at a glance
| Feature | Detail |
|---|---|
| What it prices | Spot, unallocated silver delivered in London |
| Owner | London Bullion Market Association (LBMA) |
| Administrator | ICE Benchmark Administration (IBA), since 2017 |
| Frequency | Once per London business day |
| Auction start | 12:00 noon, London time |
| Price currency | US dollars per troy ounce, converted to GBP and EUR |
| Regulation | UK Financial Conduct Authority, since April 2015 |
A short history: from the London Silver Fix to today
For more than a century, the London Silver Fix priced silver. It began in 1897. For most of its life, a small group of member banks agreed the price each day at a short meeting, and later by conference call.
That system ended on 14 August 2014. The next day, 15 August 2014, an electronic platform set the first LBMA silver price. CME Group provided the auction technology, and Thomson Reuters handled administration. According to the LBMA, the first price was $19.86 per ounce.
In 2017, both firms stepped back from the role. IBA, which had already run the LBMA gold price auction since 2015, took over the silver auction in October 2017. Since then, it has applied the same core methodology to both metals. Meanwhile, the UK Financial Conduct Authority has regulated the benchmark since April 2015. The process also follows the IOSCO Principles for Financial Benchmarks, the international standard for reference prices.
LBMA silver price vs the spot price on a chart
This is where many readers get confused. A live silver chart shows the spot price, which changes every few seconds while markets trade somewhere in the world. By contrast, the LBMA silver price is a single number, set once a day.
So on any given day, the benchmark is a snapshot of the market at around noon in London. By the afternoon in New York, the live price may be higher or lower. Neither figure is “wrong”. They simply measure different things. For a deeper look at how live prices work, see our guide to silver spot prices.
The benchmark matters because contracts need one agreed number. For example, a miner selling concentrate, a manufacturer buying silver for industrial use, or a fund valuing its holdings can all point to the same published price. Some exchange-traded products also describe in their filings how they use it for valuation. You can trace how the price has moved over time in our silver price history guide.
Where to find the LBMA silver price
IBA publishes the official prices, and the LBMA website shows them too. However, free public displays can lag, and commercial use needs a licence. So when you compare figures from different sites, check whether each one quotes the daily benchmark or a live spot price.
Frequently asked questions
What time is the LBMA silver price set?
The auction starts at 12:00 noon London time each business day. IBA publishes the result when the final round ends, so there is no fixed release time.
Is the LBMA silver price the same as the spot price?
No. The spot price moves continuously during trading hours. In contrast, the LBMA silver price is one benchmark figure that a daily auction produces.
Who runs the LBMA silver price?
The LBMA owns it. ICE Benchmark Administration runs the auction and administers the benchmark.
Why is there only one silver auction a day?
The single daily auction keeps the timing of the old London Silver Fix, which also ran once a day at noon.
Sources
- LBMA: LBMA Silver Price FAQs
- ICE: LBMA Silver Price
- ICE Benchmark Administration: Precious Metals Benchmark Statement
- LBMA Alchemist, Issue 75: No More Fixings
- SEC filing: precious metals ETF supplement, October 2017
This article is general information, not financial advice. Prices shown on any site may lag the live market, so check an official source before making any decision.
Written and reviewed by the SilverPriceCharts.com editorial team. Sources are linked above.