Spot silver price cast into doubt

<p>The future of the price of spot silver is in doubt.</p>

The future of spot silver has been cast into doubt as a result of the news a 117-year-old global benchmark may be closed down.

The London Silver Market Fixing, which is the administrator of the market, confirmed it is going to cease operations. The firm will be wound down in the next few months and will stop running the silver market on August 14th.

Investors will now be waiting to see who takes over the organisation of the spot silver market, with the London Bullion Market Association believed to be among the firms interested, reports BBC News.

Silver prices have been making headlines for the wrong reasons in recent years, with an extensive investigation launched into potential fixing of rates conducted by the US Commodity Futures Trading Commission.

However, after five years of examining the industry, it was revealed that no wrongdoing had been found.

Deutsche Bank has already confirmed it is withdrawing from the spot silver price setting process. The bank currently works with HSBC and Bank of Nova Scotia to provide a value of the precious metal to London Silver Market Fixing.

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