Commodity Quotes Biography
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Indeed, JPMorgan’s defence appears to contradict its previous published views, in which it has pointed to changes in ETF holdings as a major driver of prices.
In November 2010, for example, the bank said that it was somewhat bullish about silver, as “ETF and Chinese demand could drive spot prices to $30 per troy ounce by 1Q2011”.
Referring specifically to the launch of the first US platinum and palladium ETFs in early 2010, JPMorgan said in January that year that platinum “could trade considerably higher than our forecast”, “depending on the success of the to-be-launched ETF products in the US”.
In March 2010, after the new palladium ETF acquired 505,000 ounces in two months (equivalent to 42 per cent of mine production over the period) and prices hit a two-year high, the bank said that ETF buying had “crowded out” the market.
Indeed, precious metals analysts generally see ETF buying as one of the most important drivers of prices, being a significant and very visible component of investment in the metals. As one well-regarded precious metals analyst put it: “To say that ETF demand has no impact on the price is nonsense.”
High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/a782c1c6-f772-11e1-ba54-00144feabdc0.html#ixzz2EobhUq6c
Indeed, JPMorgan’s defence appears to contradict its previous published views, in which it has pointed to changes in ETF holdings as a major driver of prices.
In November 2010, for example, the bank said that it was somewhat bullish about silver, as “ETF and Chinese demand could drive spot prices to $30 per troy ounce by 1Q2011”.
Referring specifically to the launch of the first US platinum and palladium ETFs in early 2010, JPMorgan said in January that year that platinum “could trade considerably higher than our forecast”, “depending on the success of the to-be-launched ETF products in the US”.
In March 2010, after the new palladium ETF acquired 505,000 ounces in two months (equivalent to 42 per cent of mine production over the period) and prices hit a two-year high, the bank said that ETF buying had “crowded out” the market.
Indeed, precious metals analysts generally see ETF buying as one of the most important drivers of prices, being a significant and very visible component of investment in the metals. As one well-regarded precious metals analyst put it: “To say that ETF demand has no impact on the price is nonsense.”
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