Commodity Markets and Precious Metals

Your goal:

To build a satisfactory risk/return profile taking into account the current market situation

We offer:

Commodity market and precious metals market operations

Precious metal operations

For corporate clients

When performing operations on the primary precious metals market, Sberbank CIB applies methods for providing comprehensive service to mining companies and companies from related industries, which involve various banking instruments:

  • Maintenance of unallocated bullion accounts, maintenance of accounts and performance of settlements in roubles and foreign currency
  • Provision of loans in previous metals to mining companies and producers of precious metal from scrap and waste
  • Price risk hedging
  • Provision of short-term loans to support the precious metals extraction season; purchase of extracted and produced precious metals
  • Provision of long-term financial resources to pay for imported equipment using documentary letters of credit opened in credit lines from foreign banks
  • Storing precious metals, etc.

For financial institutions

Sberbank CIB is a major operator on the Russian precious metals market, and offers competitive prices for the purchase and sale of precious metals in physical and depersonalized form:

  • Operations with depersonalised precious metal
  • Depository operations, SWAP operations, derivative instruments
  • Operations with physical precious metal

Purchase and sale of precious metals can be conducted pursuant to acceptance-and-transfer of precious metals terms:

  • In a Sberbank vault
  • In the Client’s/ Contractor’s vault.

The following kinds of minted bars can be purchased at Sberbank CIB:

  • Gold weighing 1, 5, 10, 20, 50, 100, 250, 500 and 1000 g
  • Silver weighing 50, 100, 250, 500 and 1000 g
  • Platinum weighing 5, 10, 20, 50 and 100 g
  • Palladium weighing 5, 10, 20, 50 and 100 g

Instruments for hedging commodity risks

Derivative commodity instruments are finding increasing popularity among corporate clients and financial institutions whose performance depends on the prices of these assets either directly or indirectly. They are very convenient for hedging financial risks and also managing cash flows.

Advantages of using commodity instruments:

  • Reduction of the risk of unfavourable changes in commodity prices
  • Stabilisation of financial results
  • Increase of the accuracy of forecasting corporate accounting indicators
  • Support of supplies under long-term contracts with consumers
  • Possibility of reducing the cost of financing for companies

Advantages of working with Sberbank CIB:

  • Possibility to link hedging instruments to commodity indexes/prices on commodity exchanges
  • Construction of tailored comprehensive solutions for companies
  • Large list of underlying assets (precious and industrial metals, oil and petroleum products, iron ore and coal, agricultural goods, and others)
  • Wide range of instruments for working with commodities:
    • Commodity swaps
    • Common options “call/put”
    • Exotic options
    • Option strategies
    • Structured products