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CME Group: Aug. Metals Volume Rises Slightly From Year Ago

Kitco News

Exchange operator CME Group reports that metals volume averaged 626,000 contracts per day in August, which was up 1% from 622,000 in August 2017. Among the highlights, copper futures and options average daily volume increased 16% to 149,000 contracts. Average daily volume in gold options rose 29% to 57,000 contracts. On a rolling three-month basis, metals volume averaged 644,000 contracts during the period ending in August. This was down from 661,000 for the three-month period ending in July, 674,000 for the period ending in June and 680,000 for the period ending in May.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Metals Focus: U.S. Silver Powder Exports Strong But To Ease

Wednesday September 04, 2018 10:00

U.S. silver powder exports were little changed year-on-year in June but were strong during the first six months of the year, says the consultancy Metals Focus. However, they are likely to wane in the second half of 2018. The first-half strength was in large part due to photovoltaic demand in China as companies rushed to finalize installations before feed-in tariffs were reduced at the beginning of June as a part of the government’s policy announced earlier this year, Metals Focus says. “However, the impetus this created has now led to a mismatch between PV demand and supply, which in turn has resulted in downward price pressure for finished cells,” the consultancy continues. Meanwhile, other government policies now are weighing on the global PV industry, particularly U.S. import tariffs, Metals Focus explains. “In the context of U.S. silver powder offtake, it therefore looks as though the second half of this year will see a much slower pace of fabrication demand,” Metals Focus says. “To put this into perspective, during [the first half], the volume of reported U.S. gross exports totaled 518t [tonnes], an increase of 29% y/y [year-over-year]. Furthermore, this was the highest half-yearly level since H1.11, when gross exports reached 714t. For calendar 2018, we therefore expect to see solid growth, but well below the H1.18 performance.”

By Allen Sykora of Kitco News; asykora@kitco.com

 

Commerzbank: Gold/Silver Ratio Hits Highest Level In Decade

Wednesday September 04, 2018 10:00

Gold has been outperforming silver and platinum, with the gold/silver ratio this week climbing to its highest level in a decade, says Commerzbank. The ratio measures how many ounces of silver it takes to buy an ounce of gold, with a rising number meaning outperformance by gold, and vice-versa. Both metals were hurt Tuesday by a stronger U.S. dollar. “The silver price dropped to $14 per troy ounce and the platinum price to below $770 per troy ounce,” Commerzbank says. “Besides a falling gold price, silver and platinum were dragged down by the weak base metals prices. As a result, the gold/silver ratio increased to over 84, its highest level in almost 10 years. The price gap between gold and platinum has widened to $415 per troy ounce.”

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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