Commodity and Precious Metals
1.Commodity Forward
Commodity forward is an investment product BOC offers to corporate customers for the trading of forward without physical delivery of precious metal, base metal, energy and agriculture products. Commodity forward aims to satisfy clients’ need of commodity market risk management. The clients should have sufficient risk management ability as well as have related background.
Clients can hedge the commodity risk by buying or selling certain amount of forward contract. In this way, clients can fix the expected cost or income by fixing the future price of the commodity. The tradable products include crude oil, basic metal, agriculture products, iron ore etc.
2.Precious Metals
Bank of China provides precious metal leasing, spot, forward and swap to corporate in the precious metal producing and distribution chain. Bank of China leases international precious metals to the lessees and the lessees return the international precious metals as agreed and pay the precious metals lease charge in USD or any other currency. The lessees are entitled to dispose of the precious metals during the lease period; the precious metals leased by the Bank are International Gold, International Silver, International Platinum, International Palladium, International Rhodium and other precious metals. Precious metal leasing can help clients hedge the market risk of gold price and lower the funding cost. Clients can also use spot, forward or swap to hedge the market risk of precious metals.
