Both silver and platinum exploded this week. AI, especially, the rapid development of data centers, along with electronics uses led to the gains.
Silver is important to solar energy photovoltaic systems to convert sunlight into electricity. Platinum is a key to autocatalysts used to recycle other precious metals and in automobile catalytic converters which help sustain clean air.
The Chinese have pledged to cut emissions, reduce greenhouse gases, increase solar energy use, and move to alternative fuel vehicles. These new moves toward environmental protection are seen as a positive sign for precious metals futures. Analysts hope that U.S. policy will match the Chinese efforts.
Fall Harvest Has Bean Stressful So Far
With China looking to Brazil and now Argentina for their soybeans, American farmers continue to look for ways to profit from their large bean harvests. With this year’s U.S. crop half harvested,Taiwan has signed a $6.4 billion deal with Indiana to buy beans and corn to ease some of the farm pain. Last year, China spent $12.6 billion on U.S. beans, but the number stands at zero dollars as of now due to tariff disagreements between the two countries. China has basically admitted to withholding purchases of U.S. soybeans as a tariff protest.Hopes for a tariff agreement were high after a recent U.S. — China TikTok accord, but no further deals come forth.
The American Soybean Association has called upon the current administration to resolve the tariff issues. Meanwhile the government will use other tariff dollars to ease losses sustained by the bean farmers. However, farmers are looking for long term solutions that will allow them to earn their incomes directly from crops. With bumper crops and few options to sell their harvest, farmers are running short on storage facilities to hold the corn and beans as bulls hope the Chinese will come to American markets by winter.
Late Week Copper Droppers
Global demand had kept copper prices up through Thursday. However, a decision to exempt the 50% tariff on the raw material, fears of recession, and a slowdown of Chinese factory work caused a sell-off late in the week. Copper’s use in electric vehicles as well as in AI infrastructure adds to its versatility.
Declining and unreliable mine supply along with increased production and mining costs have created the supply issue. Freeport McMoRan, the largest producer of the metal, has dropped Indonesian production by 35% due to mudslides in their mines. The company declared a force majeure contract situation, a clause that allows previous contract agreements to be broken due to natural causes such as fires and mining accidents.