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Category Archives: Metals

Metals news updates from John Lothian News.

A Blockchain Solution to Gold Settlement Issues Standard

Gold Bars

Amid all the talk of blockchain and its applications for the financial and trading worlds, Euroclear and ItBit have gotten together to come up with what they feel is a solution to some of the problems in the gold market, in particular the settlement of unallocated gold. The two companies are partnering to develop a blockchain-based service which lowers costs, makes delivery and payment systems more efficient, and reduces balance sheet issues. The service uses New York-based ItBit’s blockchain technology called Bankchain, which provides tracking, clearing and settlement of trades. Addressing efficiency problems in the gold markets is no easy…

The ETF That Glitters: An Interview with William Rhind, CEO of World Gold Trust Services Standard

Today, November 18, is the 10-year anniversary of the launch of the SPDR Gold Shares ETF (“GLD”), the first physically-backed gold ETF to launch in the US. The ETF was an instant success, gathering $1 billion in the first three days of trading.  It became the largest ETF in the world for one day in 2013, and it is currently the largest gold ETF and the largest physical gold fund. We spoke with Will Rhind, the new CEO of World Gold Trust Services, a subsidiary of the World Gold Council, on the anniversary of the launch and what is ahead…

Addendum to the CME Gold Futures Story Standard

Gold Bars

The lead story in yesterday’s John Lothian Newsletter was a Reuters report that said CME Group is planning to launch a gold futures contract in Hong Kong by year end. We were a little uncertain about how this would work, since the CME does not have an exchange located in Hong Kong, so we spoke with the CME about it. According to a CME spokesman, the news was announced by the CME’s managing director of metals products, Harriet Hunnable, during the China Gold Congress this week in Beijing. The contract will be a kilo gold futures contract.  It will be…

Steely Eyed: Why Mike Marley of Metalprices.com says there is a future for steel and scrap futures Standard

Scrap Steel

Mike Marley is market intelligence correspondent for MetalPrices.com. He is the editor of the newsletter Marley’s Heavy Melt, in which he reports on metals prices, focusing in particular on steel scrap. Marley has more than 35 years’ experience in the metals industry and has been reporting ferrous and non-ferrous scrap prices since 1977 – first for Iron Age magazine, followed by the American Metal Market, and most recently World Steel Dynamics. He sat down with JLN’s Sarah Rudolph to discuss the challenges of determining steel and scrap prices, the lack of hedging in the steel industry, Nasdaq’s push into the…

Garry Jones: LME’s Man of Steel … And Base Metals Standard

Garry Jones

Garry Jones took the reins of the London Metal Exchange (LME) at the end of September. Just over a week into the job, he spoke with John Lothian News editor-in-chief Jim Kharouf about the LME’s next steps, what’s happening with the controversial warehouse issue, CME’s aluminum challenge and how LME’s parent company Hong Kong Exchanges & Clearing can become a metals powerhouse in Asia. Q: You’ve been on the job for just a few days. How does the LME/HKEx compare to the structure at NYSE LIFFE? A: It’s different but some things are the same. When I was at NYSE…

Asia: Pieces Falling Into Place Standard

JLN Special Report - Asia: Pieces Falling into Place

Talking about Asia often leaves professionals from those regions a bit tongue-tied. When JLN decided to do a special report talking about Asia, many of those experts had the same question: “Which country? Asia is a big place.” Indeed, talking about Asia is difficult, given the number of markets and regulatory differences, not to mention geographic distance between various Asian financial centers. The debate still goes on over which one or two or three are the most important in the region. Some say Japan, while others discuss Hong Kong’s status. Others like the positioning of Singapore. And this doesn’t include…

Class Action Lawsuit Filed Against LME and Goldman Sachs Alleging Aluminum Manipulation Standard

Aluminum

An aluminum processing company has launched a class-action lawsuit against Goldman Sachs and the London Metal Exchange alleging that they conspired with each other to restrain supplies of aluminum in the LME warehouses and inflated aluminum prices. The complaint accuses the two companies of violating the Sherman Anti-Trust Act by agreeing to operate in “an extremely inefficient manner” and to “provide extremely low quality of service” in the warehousing arena. The class-action suit, brought by Superior Extrusion, Inc. et al., comes shortly after a New York Times article broke the story that Goldman Sachs was profiting – at the expense…

Five Minutes with Marc Dulin Standard

Raw material storage

Marc Dulin, president and managing director of MetalPrices.com, has participated in the metals markets for more than 30 years. He spoke with JLN editor-in-chief Jim Kharouf about how metals prices are created for OTC markets as well as macro developments that are changing the way in which financial, physical and retail investors are using the metals markets. Q: MetalPrices.com distributes prices on a variety of different metals markets including LME, CME, Shanghai Futures Exchange and others. The question is – isn’t all the pricing the same? A: Price discovery is fairly different for each metal group. Metals on exchanges are…

Gold Reached 5000 yen/gram on TOCOM; Prices of Other Commodities Also Rise Standard

Gold Reached 5000 yen/gram on TOCOM; Prices of Other Commodities Also Rise (Tokyo, February 4, 2013) The Tokyo Commodity Exchange, Inc, announced that its December 2013 Gold futures contract (most active/back contract month) temporarily reached 5,000 yen per gram (up 1.2% on day-to-day basis) during today’s session renewing the highest price recorded since the listing of gold futures contract at TOCOM on March 23, 1982.  Prices of some of the other listed commodities also showed a significant increase. December 2013 Platinum futures contract (most active/back contract month) increased to 5,130 yen per gram (up 2.7%), the highest level since May…