The Goldfield news. [volume] (Goldfield, Nev.) 1904-1911, 1907-04-27
HOW MARKET PRICES OF
METALS ARE DETERMINED

done with jewelers.. manufacturer OF
silverware, etc, a business into which
the large refners do not enter. The
large transactions in silver are rather
complicated. and as above stated are
closely involved with banking. This 10
illustrated by the transactions Of the
United States mint in 1906. when II
purchased 6,15s,725 ounces of silver. Be-
fore inviting tenders publicity. last Au-
gust the treasury department.. anticipate
ing that such invitation might have an
effect upon the market, bought about
$500. 900 ounces on the London market
for future delivery. These purchases
were afterward exchanged for metal in
this country. which was delivered at the
several mints as required. The re-
mainder was purchased directly in this
country. The American purchase cost.
in lots of about f0c, 600 ounces. from
three-eights to one-haif cent more than
the quotation for the same day. How
ever, the prices paid by the government
included delivery. n also interest
which sellers have to recko on account
of delay in securing government settle-
ments.
Because Of the fact that about 20
per cent of the worlds copper output
is produced in North American. the
New York market Is the leading and
governing ere In this metal. although
1t is always strongly influenced by the
London market, inasmuch as a large
part of the american production Is sold
for export. Practically all of the copper
produced in North America Is sold by
seven concerns, but of these two are
extremely small factors. On the other
hand the great bulk Of the domestic
/ consumption Is by q few manufacturing
concerns. Under these circumstances.
the transactions are generally in large
lots on a contract basis. There Is no
business lone in any way. Small require
ments for copper are supplied by brokers
who purchase from the large selling
agencies, and do a retail business. so to
speak. which Is quite distinct from the
great wholesale business.
The quotations which are reported In
the Journal represents the bulk Of the
transactions al made with consumers.
basis. New York. cash. The quotations
are based on transactions which repre-
sent a very large proportion of the total
copper sold. No distinction Is made
among copper sold as spot" prompt"
a. future" but all the sales are taken
as made for consumption and averaged
as nearly as possible. The small lots
sold at premiums figure almost disap-
pearingly small when averaged In the
great bulk Of the transactions. 1t Is
aimed to represent the average actually
received by the producers for their
whole output, as 1t IL shown at the END
Of the year by their official reports.
1t is common practice. nowadays. for
copper to be sold on the basis of thirty
days, delivered, which means that the
seller pays the freight to the point OF
consumption and waits for the money
thirty lays after delivery. or else dis
counts the bill for cash. This Is COM
monty ignored in many casual and mac
curate reports Of the price of copper.
The smelter market Is quoted In tho
same manner as the copper market.
In the quotations for copper and smell
ter, two prices are commonly given.
in order to represent the range of the
market, but the full range Is seldom
shown precisely. because the mean OF
the figures given is intended to represent
the average, which would not always
be practicable by giving the extreme
ranges.