JPMorgan's Willig says traders less willing to trade New York versus London silver
The comment points to friction between the two hubs that link physical and futures silver markets
Published
JPMorgan's Willig said traders are less willing to trade New York silver against London silver, a sign of strain in the dealing relationship between the two markets.
JPMorgan Research has noted that during the tariff-related period earlier this year, large amounts of silver metal moved from London, the physical hub, to New York, the futures hub, as traders hedged basis risk, according to the bank's Research Recap podcast. That shift left London comparatively liquid while tightening the broader market.
A widening gap in how readily dealers quote New York versus London silver points to liquidity stress in the physical and paper markets that link the two hubs, a different kind of signal from JPMorgan's recent run of rate forecasts, bank-supervision views and merger commentary. If New York desks are pulling back relative to London, that suggests tightness or settlement friction specific to US delivery mechanics rather than a broad change in silver demand. Dislocations of this kind have preceded unusual moves in spot versus futures pricing and delivery premiums before, though the comment does not point to any particular direction for prices. It is a signal about market plumbing, not a call on where silver is headed.