Changes in Precious Metal Pricing
Technical Plating quotes precious parts based on the current Engelhard Fabricated Metal Price (EFM). Precious metals are commodities whose price change over time according to demand. It is not unusual to see precious metals rise in the face of economic or global uncertainty. The Engelhard Fabricated Metal price is based on the additional cost to have metals fabricated for the trade. This price is above the simple commodities price. This can be found in the Wall Street Journal.
The process of calculating the basis of the precious metal price is determined by the cost of the plated metal on a part which is raised or lowered by the % of the price move of the metal in question at the date of the part being received. The precious metal cost is presented at the bottom of each quote per part. Only the metal portion of the quote affected and not the price of the entire part.
Example: The cost to plate a part is quoted at$10.00 and the precious metal cost is $2.00 at an EFM of $20/troy oz.
Price Rise in Silver
The troy oz. price of Silver equals $25
The $10 part ($8.00 plating + $2.00 EFM) is now ($8.00 plating + ($2.00 x ($25.00 troy oz/ $20.00 troy oz)))
The price of this part is $10.25 or $8.00 + $2.25
Price Drop in Silver
The troy oz. price of Silver equals $15
The $10 part ($8.00 plating + $2.00 EFM) is now ($8.00 plating + ($2.00 x ($15.00 troy oz/ $20.00 troy oz)))
The price of this part is $9.50 or $8.00 + $1.50