Displaying items by tag: Commodities

Gold futures spiked sharply above spot prices after reports suggested the U.S. would impose unexpected tariffs on 1 kg and 100 oz bars, a major disruption for Switzerland, the global refining hub. 

These bar sizes are central to U.S. trading, and the sudden policy shift triggered short-covering and a widening of the exchange-for-physical (EFP) spread, echoing past dislocations during COVID and earlier tariff fears. The turmoil has raised doubts about the reliability of New York futures markets for price discovery, as policy volatility increasingly distorts trading signals. 

Meanwhile, the December gold contract hit a record $3,534, but analysts caution that spot prices, not futures, reflect gold’s real value. A similar drama unfolded in copper markets, where a tariff scare caused prices to soar—only to collapse when Trump reversed course. 

Finssum: Heavy trader losses, bloated U.S. inventories, and mounting questions about the integrity of U.S. commodity pricing amid tariff uncertainty are the result.

Uranium ETFs have gained traction as investor interest in clean energy and nuclear power—especially in the context of artificial intelligence’s energy demands—has grown. Although the uranium ETF market is still in its early stages, net inflows have been rising steadily, with equity-based ETFs dominating due to the lack of SEC-approved physical uranium funds. 

Major offerings like the Global X Uranium ETF (URA) and the Sprott Uranium Miners ETF (URNM) provide access to mining stocks and limited exposure to the Sprott Physical Uranium Trust (SPUT), which holds physical uranium but is structured as a closed-end trust. 

Canada remains the geographic hub for investable uranium stocks, and companies like Cameco dominate ETF holdings, while new entrants like the Roundhill and ProShares filings reflect continued market enthusiasm. 

Finsum: Until a true physical uranium ETF is approved, access remains indirect, and investors must weigh sector volatility and geopolitical risks.

Ruthenium, a rare platinum group metal, has nearly doubled in price over the past year to $800 an ounce, outperforming gold and silver thanks to surging demand from artificial intelligence applications. The metal’s unique hardness and conductivity make it ideal for hard disk drives used in data centers powering AI, where it enables high-density storage through ultrathin coatings. 

Unlike widely traded metals, ruthenium is sourced only as a byproduct of platinum mining, with global output limited to just 30 tons annually—a figure expected to decline further due to underinvestment. Analysts predict a supply deficit next year as demand outpaces dwindling production, intensifying competition for this obscure element. 

Despite being used in tiny quantities, ruthenium’s role in expanding cloud infrastructure is critical, with hard disk sales projected to rise 16% in 2025. 

Finsum: Unless alternative technologies emerge, ruthenium’s strategic value and price are likely to climb even higher.

So far in 2025, silver has climbed over 20%, breaking through $36 per ounce in early June for its highest price in 13 years, while gold has also soared, reaching a record $3,500 in April and gaining nearly 28% year to date. Both metals have attracted investors seeking safety amid global uncertainty, with gold up 47% from June 2024 to June 2025 and silver rising 23% in the same period. 

Analysts see reasons for silver to potentially outperform gold later this year, pointing to strong industrial demand, ongoing supply deficits, and its status as a leveraged monetary hedge. 

Bank of America forecasts silver reaching $40 and gold $4,000 by year-end, while other experts predict silver could even break $49 per ounce by 2025. However, risks remain, including a possible global recession reducing industrial demand, a stronger dollar, and the impact of high interest rates that could hurt all precious metals. 

Finsum: While gold’s rally might be priced in, silver’s combination of industrial and monetary appeal could help it close the gap in the coming months.

Despite intense geopolitical tension following U.S. and Iranian missile exchanges, gold prices have struggled to maintain momentum above $3,400 an ounce. Analysts attribute gold’s muted safe-haven response to the conflict’s regional containment and investor focus on broader market dynamics. 

UBS argues that gold’s value lies more in its role as a portfolio diversifier than a short-term geopolitical hedge, emphasizing its historical strength in times of uncertainty. According to the World Gold Council, central banks and portfolio managers rank gold highly for diversification, stability, and as a store of value—especially amid unpredictable U.S. policies under the Trump administration. 

UBS maintains a bullish $3,800 price target for gold, citing continued central bank and ETF demand, and also highlights high-yield corporate debt from gold miners as an underappreciated investment opportunity. 

Finsum: With mining companies showing strong balance sheets and free cash flow, M&A activity is expected to rise, offering investors alternative ways to gain from the sector’s resilience.