HISTORY OF SILVER FIXING

The London Silver Market has developed over the Last three hundred years. The first recorded deal was entered into by a Market Member in 1676 when Mocatta started trading with the East India Company.

The price at that time was 63 pennies per troy ounce of standard Silver. Towards the end of the 18th century the next Member entered the arena. Originally known as Sharps and Pickup, they shortly became Sharps and Wilkins.

During most of the 18th century, and for the first part of the 19th century, much of the business transacted in the Silver Market took place in one of the original London coffee shops. Although the firms concerned had individual offices, much of the gathering of information took place in coffee shops, making them a natural venue in which to transact business.

1852 saw the entry of Pixley and Haggard, who, five years later; became Pixley and Abell. This was followed one year later in 1853 by the founding of Samuel Montagu & Co. The price of Silver in 1853 was 61½ pennies per ounce of standard Silver.

The daily Silver Fixing commenced in 1897, although it is believed that a system of agreeing a daily spot price had evolved by the use of runners between the four houses a few years earlier. The first Fixing was attended by all four Members - Mocatta & Goldsmid, Sharps and Wilkins, Pixley and Abell, and Samuel Montagu & Co. Within a very short time two prices were 'fixed' daily - cash (up to seven days) and two months forward. The cash price of Silver in 1897 was 27 9/16 pennies,

The Silver Fixing has continued until the present day. Starting in 1967 the format of the Silver Fixing was amended, whereby the price was fixed for spot, three, six and twelve months forward, and at the same time the US Dollar equivalent was officially published. In 1999 The Fixing further evolved into a telephone based process with spot prices for US Dollar, Sterling and Euros. The Silver Fixing continues unchanged to this date, and has proved to be the most acceptable pricing mechanism for producers, consumers, arbitragers and speculators.