Raw materials

With regards to silver price, it is Comex inventories usually being discussed as a main price driver. That is both because of certain level of volumes being stored in vaults, but mostly due to fact that Comex is a derivative market, hence amount of open contracts highly exceeds available physical volumes.

In recent weeks, we had experience high price divergence between Shanghai Free Trading Zone (based on Comex and LBMA pricings) and Shanghai Gold Exchange having its own benchmark and serving domestic market. This peaked as high as 120 USD. So is it finally time for gold’s price de-coupling to occur in between east and west? And should be expect price charts to explode? Nope. Not really. We’re going to try explain what’s happening in our opinion, however need to clearly emphasize, that amount of misinformation and misinterpretations surrounding subject is extraordinary.

In the past we didn’t have many opportunities to discuss subject of gold miners on Metal Market Europe blog. We’d like to address this matter, as since couple years we witness strong trend on great sectoral mergers and acquisitions. Some could be even considered as tectonic in size, as relating to biggest names in industry.