Historically, precious metals have traded with a one-year implied volatility of around 4% to 5%, but this year, we are seeing only 1% to 2%, making all-time record lows, this according to Jin Chang, global head of metals at CME Group. “I think what is very interesting now is that despite [the low-volatility] we continue to see a great volume, and great volume means liquidity for the market place,” Chang told Kitco News. Chang noted that much of today’s trading volume of precious metals comes from overseas. “For the very first time [this year], 50% of our revenues is coming from the non-U.S. market participants,” she said.
