SEBI Ditches LBMA: India Mandates Domestic Pricing for Gold and Silver ETFs
India’s markets regulator, SEBI, issued a groundbreaking circular on February 26, 2026, mandating mutual funds and ETFs to value physical gold and silver holdings using domestic spot prices from April 1, 2026, scrapping reliance on London Bullion Market Association (LBMA) benchmarks. This shift replaces LBMA AM fixing prices—adjusted for rupees, duties, and premiums—with polled spot rates from recognized exchanges like the Multi Commodity Exchange of India (MCX), used for settling physical derivatives. The move ensures uniform, transparent valuations reflecting local market realities, amid surging investor demand.
Record ETF Inflows Signal Bullion Boom
Gold ETFs shattered records in January 2026, attracting ₹24,040 crore—more than doubling from December’s ₹11,647 crore and surpassing equity fund inflows for the first time. Silver ETFs added ₹9,463 crore, pushing total AUM to ₹1.16 lakh crore, driven by geopolitical tensions, inflation fears, and portfolio diversification. Fund managers hail the SEBI change as a transparency boost, narrowing gaps between ETF NAVs and domestic prices while simplifying investments. Separate rules now allow equity schemes greater exposure to gold, silver, and infrastructure trusts, amplifying the bullion surge.
RBI Unlocks Silver as Loan Collateral
Coinciding with today’s SEBI announcement—Thursday, February 26, 2026—the Reserve Bank of India (RBI) affirms silver’s full monetization via its Lending Against Gold and Silver Collateral Directions, 2025, effective April 1, 2026. Silver sidelined on shelves or in jewelry drawers can now secure loans from banks and NBFCs, with limits at 10 kg ornaments or 500g coins (bullion excluded). Loan-to-value ratios tier from 85% (up to ₹2.5 lakh) to 75% (above ₹5 lakh), valued at IBJA or exchange rates, shifting households from informal lenders to formal finance. This “silver revolution” could unleash billions in liquidity, especially rural India, where silver holdings rival gold.
LBMA, Western Spot Prices Now Irrelevant
SEBI’s pivot declares LBMA and Western spot pricing obsolete for India’s massive funds sector—home to record ETF inflows and now RBI-backed silver loans. Domestic MCX-led valuations tie bullion to rupee dynamics, imports, and local premiums, shielding from London manipulations amid China’s vaulting and global shortages. For silver analysts, this dual blow—ETF revaluation plus collateral status—ignites remonetization, potentially revaluing physical metal at 10:1 gold ratios in lending. Western benchmarks fade as India’s 1.4 billion population drives the next precious metals supercycle, with uniform policies via AMFI ensuring smooth rollout.
Industry voices welcome the “global to local” reset: Morningstar notes gold’s structural portfolio role, while experts predict tighter supplies and viral demand. As Trump-era tariffs loom and EM demand explodes, LBMA’s irrelevance underscores India’s commodity clout—today’s exact timestamp marks the tipping point.
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Gut Punch: SEBI axes LBMA—India’s funds ditch Western pricing schemes for MCX domestic spots, killing London’s grip.
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Chin Uppercut: RBI greenlights silver as bank loan collateral April 1—one month out—monetizing jewelry drawers nationwide.
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Knockout: $384B equity funds now pile into gold/silver, unleashing epic bullion frenzy as India remonetizes
The West is down for the count
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Meanwhile, in Canada, silver is still sitting on the clearance rack after yesterday’s “glitch” on the criminal CME/COMEX handed bullion banks a discount bonanza. While India detonates LBMA’s grip and remonetizes silver, You can quietly scoop up underpriced physical at outlets like SprottMoney.com before the paper-price fraud catches up. The disconnect between broken Western paper markets and real-world demand has never been more blatant—or more actionable.
See that 10 ounce bar for under $93 per ounce?, get as many as they will sell you
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