• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 15 hours Oil prices going Up? NO!
  • 2 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 6 hours Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 36 mins The Tony Seba report
  • 2 hours Kenya Eyes 200+ Oil Wells
  • 2 hours Are Electric Vehicles Really Better For The Environment?
  • 1 day Oil prices going down
  • 11 hours Saudi Arabia turns to solar
  • 1 day Could oil demand collapse rapidly? Yup, sure could.
  • 23 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 2 days Oil Buyers Club
  • 2 days Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 2 hours OPEC soap opera daily update
  • 1 day Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 2 days Gazprom Exports to EU Hit Record
  • 1 day Tesla Closing a Dozen Solar Facilities in Nine States
Alt Text

Market Insiders Baffled By Low Platinum Prices

Platinum prices are at their…

Alt Text

This Breakthrough Could Spark An Oil Sands Revival

This innovative oil sands and…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

China Is Now In Control Of Global Silver Prices

China has been an unofficial price-setter for most metals over the past decade. And this week, the country became an official participant in setting prices for one of the world’s most important precious metals markets.

That’s the London Bullion Market silver price. Where one of China’s largest banks just became a member of an elite group of players that controls fluctuations in this key metal. Related: Contraction In U.S. Shale Pushes Oil To $40

CME Group, which runs the process for price setting of silver in London, said Sunday that China Construction Bank will officially join as a member of the silver price process. Putting it alongside existing participants HSBC, JPMorgan Chase, The Bank of Nova Scotia, Toronto Dominion Bank, and UBS.

These groups will now participate in price bids that go into setting the official London silver price. The first time that China will have direct influence on this process.

The expansion into China in itself is significant. And the entry of China Construction Bank into the market could also have some other important consequences for precious metals. Related: Oil Fundamentals Could Cause Oil Prices To Fall, Fast.

Especially when it comes to currencies. With the Chinese bank having said it will support the development of renminbi-denominated futures contracts for physical delivery in London.

Such products would represent the first time that physical silver can be bought and sold here in China’s home currency. A move that could reduce the longstanding relationship between the U.S. dollar and precious metals prices. Related: The U.K. Is About To Boost Oil Exploration With An Old Trick

This is also a sign that precious metals markets are increasingly going international. Which makes sense, given that the world’s top consumers are places like China, India, Russia and Turkey.

This could be the start of further moves to increase metals markets influence in these parts of the world. Watch for more announcements, and for a possible breakdown in the USD/silver correlation as the renminbi contracts get going.

Here’s to a silver line-up

By Dave Forest

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News