After vaulting 5.8% to an all-time closing high ($56.50) on Friday, spot silver rallied an additional 2.4% to a Monday morning high of $57.86. Reverberations from the record flow of physical silver to London in October (to ease a historic squeeze in the world’s largest silver trading hub) are now being felt in China, where silver inventories linked to the Shanghai Futures Exchange have now hit their lowest level since 2015. Chinese exports of physical silver hit 660 tons in October, the highest monthly total on record.
Citing growing concern of a 2026 copper shortage, Chilean copper giant Codelco has floated a massive hike in its annual premium for refined metal supplied to Chinese customers (from $89/t in ’25 to $350/t in ’26).
Joining the global chorus of (mostly symbolic) sovereign efforts to diminish reliance on critical minerals sourced from China, India’s Union Cabinet approved an $800M initiative to “scale up” domestic manufacturing of rare earth permanent magnets (REPM’s).
Details are emerging that BHP’s aborted attempt to acquire Anglo American included a detailed 11/20 proposal to Anglo’s board totaling $53B (24% premium to Anglo’s 11/20 closing price).
Liquidity watch: NY Fed’s Standing Repo Facility hit $24.4B on Friday (from zero on Monday) and the overnight general collateral repo rate touched 4.13% (vs. 3.875% fed funds target rate).
European bonds ticking lower by 4bps-5bps across the board. 10-year Treasury yield +2.1bps (4.034%). Euro Stoxx 50 -0.8%, S&P futures -0.7% and Nasdaq futures -0.95%. DXY dollar index -0.3%, spot gold +0.2% and spot silver +1.3%.
