Under the hood, the raw materials ranging from silver, platinum and copper have incorporated extreme scarcity in recent months, says Daniel Ghali, senior strategist of TDS raw materials.
Metals reveal a fragmented global inventory
“The issues ranging from the illusion of silver liquidity, continuous pressure on platinum and historical pressure on the copper of the LME share a common thread. A separate mega-theme is emerging: we believe that global inventory systems are at least partially fragmented.”
“This emerging theme was probably catalyzed by the commercial war, which has inadvertently fed a wave of metal flows to the US and simultaneously an impulse of collecting in China, draining the global inventories reserve available for purchase.”
“It is unlikely that these inventories return to the system due to (1) the financing of real assets, which inhibits metal flows from the US, and (2) the Chinese collection that exhibited some strategic nuances. Commercial distension between the US and China hides the fact that the two greatest economies in the world are effectively competing by raw materials.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
