NZ company finds solution to volatile silver price - RNZ

AI desk brief

BNZ has completed its first silver hedge for New Zealand Mint’s Agoro, a collectibles business that manufactures for brands such as Star Wars and Marvel and wants to lock in input costs amid sharp silver volatility. BNZ said silver rose more than 50% in NZD terms in January before falling 25% in two days, while the global silver market is expected to post a sixth consecutive annual supply deficit this year.

Agoro said the long lead times on product development make hedging important because underlying gold and silver costs can move materially before goods reach customers. The company also pointed to silver’s dual role as both an investment metal and an industrial commodity, with geopolitical uncertainty supportive for safe-haven demand but higher inflation, rates and a stronger US dollar weighing on prices.