You are here
Ronan Manly: LBMA gold price benchmark ignores market conditions and shortchanges investors
By Ronan Manly
BullionStar.com, Singapore
Thursday, April 30, 2020
As the gaping spread between London/LBMA spot gold prices and front-month COMEX gold futures prices persists for a sixth week triggered by the bullion bank exchange-for-physicals liquidity blowup on March 23, one unappreciated aspect of this gold price discovery scandal is that daily London LBMA Gold Price auctions are deliberately ignoring Comex gold prices when setting the opening price (starting price) in the twice-daily gold price auction.
By ignoring the much-higher Comex gold futures prices while setting the LBMA gold auction starting price, the auction administrator -- the Intercontinental Exchange Benchmark Administration -- is ignoring current market conditions in the gold market. (A stated methodology of the auction is to use current market conditions.)
... Dispatch continues below ...
Buy, Sell, or Store Precious Metals with Money Metals Exchange
Money Metals Exchange, a national bullion dealer recently voted "Best in the USA" by a worldwide ratings group --
https://www.moneymetals.com/news/2015/02/03/worldwide-ratings-organizati...
-- is a great low-cost source for precious metals coins, rounds, and bars. Money Metals also pays handsomely when you wish to sell your precious metals.
Shop online with Money Metals Exchange here --
https://www.moneymetals.com/buy
-- or by calling 1-800-800-1865.
Meanwhile, Money Metals Depository will store your precious metals in a segregated account at low cost:
https://www.moneymetals.com/depository
The LBMA Gold Price auction is thus shortchanging global gold market participants and investors who all use the LBMA Gold Price benchmark (the final price from the auction) as a critical reference rate.
The motivation? To take the spotlight off the fact that the London spot gold market is broken and that the LBMA market makers have liquidity problems. ...
... For the remainder of the analysis:
https://www.bullionstar.com/blogs/ronan-manly/lbma-gold-price-benchmark-...
* * *
Toast to a free gold market
with great GATA-label wine
Wine carrying the label of the Gold Anti-Trust Action Committee, cases of which were awarded to three lucky donors in GATA's recent fundraising campaign, are now available for purchase by the case from Fay J Winery LLC in Texarkana, Texas. Each case has 12 bottles and the cost is $240, which includes shipping via Federal Express.
Here's what the bottles look like:
http://www.gata.org/files/GATA-4-wine-bottles.jpg
Buyers can compose their case by choosing as many as four varietals from the list here:
http://www.gata.org/files/FayJWineryVarietals.jpg
GATA will receive a commission on each case of GATA-label wine sold. So if you like wine and buy it anyway, why not buy it in a way that supports our work to achieve free and transparent markets in the monetary metals?
To order a case of GATA-label wine, please e-mail Fay J Winery at bagman1236@aol.com.
* * *
Support GATA by purchasing
Stuart Englert's "Rigged"
"Rigged" is a concise explanation of government's currency market rigging policy and extensively credits GATA's work exposing it. Ten percent of sales proceeds are contributed to GATA. Buy a copy for $14.99 through Amazon --
https://www.amazon.com/Rigged-Exposing-Largest-Financial-History/dp/1651...
-- or for an additional $3 and a penny buy an autographed copy from Englert himself by contacting him at srenglert@comcast.net.
* * *
Help keep GATA going:
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
To contribute to GATA, please visit:
