Chaos in the gold market, caused by the pandemic of COVID-19, is affecting other precious metals, including silver and platinum, causing great losses in some banks.
The gold market turned into chaos in March, due to the suspension of flights and the closing of refineries, which made traders resent being unable to get the gold to New York in time to deliver it against futures contracts, informs the Bloomberg portal.
This, in turn, has taken insurance premiums for gold futures, which are normally traded at the same rate as London’s current price, to skyrocket to $ 70 (R $ 370) an ounce.
The portal warns that there are signs that this dynamic is not limited to gold. Silver and platinum futures have been trading at high levels against spot metals since the beginning of April. As with gold, insurance premiums are spurring huge increases in the New York Stock Exchange.
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The explosion of gold differentials earlier this year caused major losses for some banks, which may sell futures in New York to cover their positions on the London over-the-counter market.
HSBC Holdings lost $ 200 million (R $ 1.1 billion) in just one day of operations, which illustrates the challenges that banks face due to unrest in the exchange of physical assets (EFP).
Silver and platinum are experiencing a similar moment. The price differential between silver futures and spot prices ended the second quarter at the highest level in nearly four decades, notes the portal.
Platinum’s EFP reached its highest level since 2008. And palladium had the biggest difference recorded since 1993.
Unrest caused reserves to skyrocket amid efforts to satisfy the apparent scarcity. Silver and platinum reached a record high on the stock exchange and remained around those levels.
Meanwhile, the positions of the futures of these two metals declined as a result of the movements caused by the pandemic, creating an excess of metal similar to that of gold.