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

...

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.