China stainless steel mogul fights to avoid a second collapse
A debt crisis is threatening the future of one of the world’s top stainless steel producers, Jiangsu Delong Nickel Industry.
Several Chinese banks have reportedly approached the London Bullion Market Association (LBMA) in the last few days looking to be part of the silver pricing benchmark.
The financial institutions, however, are waiting to see who will be awarded the administration of the gold fix before they decide whether to also take part in the twice-daily gold pricing sessions, The Bullion Desk reports.
The LBMA began using a new, electronic price-setting process for London’s precious metals market in August, using an algorithm to set the benchmark price for silver.
But so far only five participants have signed up to the new process, with JPMorgan Chase joining on Monday. The LBMA Silver Price replaces a closed teleconference run by member banks, criticized for being opaque and vulnerable to manipulation, which was effectively killed off in April.
The LBMA-led search for an alternative for both the gold and silver fix came as market regulators had been scrutinizing benchmarks across the financial sector in the wake of a scandal involving rigging of interest rates.
Image by Robert Baxter | Flickr Commons.
3 Comments
James Bond. Universal Exports
This is going to be interesting. The Chinese will try and drive up the price while JPM and the western banks try to supress it, under the orders of the Fed. I wonder who will win. I would put my money on the Chinese in the long term.
bill
Me too. I think the crooks will initially get to put the “fix” in but the Chinese will set the price independent of the criminals, based on the real market value.
Me2
It will be in the best interest for all the eastern nations to establish credibility to the precious metals markets. The LBMA via the Fed and other secret parties have suppressed the PM market for too long. I am hoping the collapse of the US$ crushes the global manipulation of PM so that fair market values can be introduced. Maybe that will give 3rd world / emerging economies the incentive to over-power the fiat US$ fraud and Ponzi System.