Zinc Futures Signal a Bright Future for Star Mountain Resources, Inc. (SMRS)
Since Monday, June 29, 2015, a new physically-delivered zinc futures contract (ZNC) of 25 tonnes (metric tons) has been trading on the CME Globex. Its introduction has made it easier for both producers and industrial users to hedge price risk. However, like futures in general, the ZNC is serving another purpose that’s just as important: signaling market sentiment on zinc spot prices. In what is referred to as price discovery, futures prices are used for pricing cash market transactions. They’re everyone’s consensus on where prices on the underlying asset are going, and the consensus is that zinc is on its…