Posted 20th November 2020

JP Morgan faces new competition in the physical silver market

comex delivery requests

Andrew Maguire shares word that Standard Chartered bank is competing aggressively with JP Morgan for physical silver.

Watch this week’s Live from the Vault for:

  • 3 fresh bullish drivers for silver. 
  • The sweet spots for gold and silver ahead of next week’s options expiry.
  • Why the gold and silver price may have overshot insider’s comfort levels
  • A short, medium and long term view of gold and silver.

In this week’s exploration of the gold and silver markets, Andrew Maguire reveals that Standard Chartered, India’s largest bank, is directly competing with JP Morgan for physical silver bullion.

In more news from India, Andrew Maguire reports that record gold buying is anticipated in the nation, as festival season gets underway.

Standard Chartered bank competing with JP Morgan

According to Andrew Maguire, Standard Chartered bank has begun competing with JP Morgan to buy up every refined wholesale 1000 oz silver bar available. The Indian bank appears unphased by the delivery and transportation costs, purchasing the silver bullion at a very large premium to spot.

Andrew Maguire believes the bank’s apparent lack of concern with the additional costs, indicate that Standard Chartered is moving aggressively into physical silver. In Andrew Maguire’s opinion, another major COMEX market maker joining JP Morgan in the hunt for physical silver is a clear indicator of heightened global physical silver demand.

As Andrew Maguire sees it, news that every single ounce of silver production is being aggressively competed for is an extremely bullish driver for silver.

Gold buying season in India begins

The Indian festival season commenced last Friday, which marks the opening of an auspicious period for purchasing gold bullion in the Indian market. According to Andrew Maguire, a strong monsoon season has led to a bountiful harvest with official reports detailing record crops across the nation.

It is known within the gold industry that the nationwide prosperity of a strong monsoon season always bodes well for a very strong gold-buying season in the country. Despite gold prices in rupee around 30% above the prices for last year’s festival season, Andrew Maguire anticipates a record season for Indian physical gold demand.

However, the precious metals expert reports that in their unwillingness to import gold into higher prices, wholesalers have been caught short of supply. With flows evidencing a rush to import gold to meet demand, just as the season begins.

All signs indicate the festival season will produce strong physical gold demand in the nation, with potential to impact the wider market.

Next Episode: Andrew Maguire carries out another detailed round-up of the gold and silver markets.

The opinions expressed in this publication are those of Andrew Maguire and do not purport to reflect the official policy or position of Kinesis.

This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.