Displaying items by tag: Commodities

The Trump administration plans a series of “historic deals” with the U.S. mining sector to expand domestic production of critical minerals vital to national defense and high-tech industries. Earlier moves included taking equity stakes in companies developing lithium, rare earths, and other strategic resources as part of a broader effort to reduce reliance on foreign suppliers, particularly China. 

Officials argue that strengthening domestic supply chains is essential for economic security and long-term competitiveness. Momentum is already building, with plans underway to construct the first U.S. minerals refinery in decades with federal financial backing. 

The strategy also includes accelerating major mining projects in states such as Alaska and Arizona, including large-scale copper developments led by global miners.

Finsum: Together, these initiatives signal a concerted push to revitalize U.S. mining and lead to a sectoral boost.

Gold and silver prices fell following the U.S. Federal Reserve’s latest policy announcement, as Jerome Powell’s hawkish comments sparked uncertainty over future rate cuts. Analysts say gold remains the traditional safe-haven asset, performing well during inflation and economic instability, with strong support from central bank and investor demand. 

In contrast, silver’s dual role as an industrial and investment metal makes it more volatile, closely tied to sectors like solar energy and electronics. Experts suggest gold’s stability makes it ideal for conservative, long-term investors, while silver offers higher risk and potential reward during industrial recoveries. 

They advise balancing both metals based on market conditions, gold for protection, silver for growth. 

Finsum: Ultimately, portfolio weighting, not outright preference, should guide investors in the post-Fed environment.

Copper prices rose about 2% Wednesday after Freeport-McMoRan warned of major production losses from the suspension of its Grasberg Block Cave mine in Indonesia following a deadly mud rush. 

Operations remain halted after two workers were killed and five remain missing, cutting Q3 copper and gold sales by about 4% and 6% versus prior estimates. The impact will be harsher in Q4, with PT Freeport Indonesia’s copper and gold output expected to be negligible compared with forecasts. 

Looking ahead, 2026 production could fall 35% below prior projections, with a full return to pre-incident levels unlikely before 2027. Freeport expects its Big Gossan and Deep MLZ mines to restart later this year, while Grasberg’s phased ramp-up begins in 2026, and it has declared force majeure with insurance recovery capped at $700 million. 

Finsum: The disruption at one of the world’s largest copper mines comes as global supplies remain tight, further lifting copper prices.

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.