Change in silver fix sets stage for gold overhaul

Ruth Crowell had been in her job just four months when two of her industry's century-old traditions began to crumble.

First, Crowell would have to guide the modernisation of how the precious metals industry sets a worldwide silver price, a process instituted in 1897. Then she would guide changes in the 95-year-old method of fixing gold prices.

This was an unprecedented reshuffling. It fell to the 34-year-old American, who had risen in seven years from a post as a temporary worker at the London Bullion Market Association to become the international trade group's first female chief executive in January, to ensure the transition went smoothly.

"When something that's been around for over a century decides to stop, it's going to catch people by surprise," Crowell said. "We were going to be on the time line pass or fail, and I was damned if it was going to be fail."

The trade group has no role in setting the prices, but its 77 members and 69 associates from more than 30 countries adhere to standards for physical delivery and vault storage that amount to a seal of approval among the world's traders.

Crowell says the challenge is to make sure buying and selling stay lubricated with cash as stricter regulations in Europe and the United States make it tougher and more expensive to trade.