UC Resources Ltd.

UC is an emerging producer of Gold and Silver. The Company's goal is to combine cash flow from production, along with a significant exploration upside from its mining assets. The Company is working on its long term objectives to build a mid-tier Production company with a specific focus on silver and gold development in Mexico.

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Libor row prompts wider benchmark debate

UC Resources Ltd.

about 12 years ago

http://www.ft.com/cms/s/0/e2cc9afc-e793-11e1-86bf-00144feab49a.html#ixzz23jsuPGOC

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Other areas are under scrutiny. Gold and silver are liquid markets, with prices being set by thousands of actual transactions but forward prices for precious metals are set – like Libor – by a small club of banks.

The London Bullion Market Association, the trade association for the London precious metals industry, is reviewing the methodology for its forward rates for gold and silver, according to people familiar with the situation.

The procedure for setting gold forward rates – called “Gofo” – differs crucially from Libor in that the banks involved are obliged to trade at the prices they submit.

In the less liquid silver market, however, banks merely submit an indicative estimate of the market rate. The LBMA says that the silver rates, known as “Sifo”, are for information purposes and are not designed to be traded. “The LBMA does not recommend that they be used as benchmarks to settle any transactions,” it says in its guide to the market.