COMEX Silver Futures

Silver Futures Live Chart

COMEX Silver Technical Analysis

About COMEX Silver Futures

What is Silver Futures?

Silver futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of Silver at a predetermined price on a future delivery date.

Where to trade Silver Futures?

In the US, silver futures are purchased at exchanges, most notably at the New York Mercantile Exchange (NYMEX) through its Commodity Exchange (COMEX) division. COMEX Division’s contract months are performed for delivery for the duration of the modern-day calendar month, the following two calendar months, January, March, might also, and September that is within a 23-month duration. July and December also are protected, must they fall within a 60-month duration, starting with the current month.

Silver futures are also traded electronically through the Chicago Board of Trade (eCBOT), Dubai Gold and Commodities Exchange (DGCX), the Indian National Commodity and Derivatives Exchange (NCDEX), Multi Commodity Exchange (MCX) and Tokyo Commodity Exchange (TOCOM). TOCOM silver futures are traded at 30000 grams (964.53 troy ounces) at a price of yen per gram.

Silver Facts

Silver has been mined for thousands of years, originating in Asia Minor. Silver has played a major role in the history of global currency. The Ancient Greeks were the first to use silver coins. In 1792, the United States decided to base its monetary system on the silver dollar. U.S. usage of silver in currency was discontinued in 1965, and Mexico is the only country that uses silver in their coins.

Silver is used for a diversity of goods including jewelry, glass, and common household appliances. It is also used for electrical appliances. Due to its lustrous metallic element, silver can also conduct heat and electricity far better than other precious metals. Worldwide leaders in world silver production include Mexico, Peru, and China. In the U.S., silver is produced in states such as Nevada, Alaska, Arizona, and Idaho.

Advantages of investing in Silver Futures:

Some of the major advantages of Silver Futures are mentioned below.

COMEX Silver futures and options contracts are worldwide standard goods. Deep liquidity around the clock for trade executions. Contracts are listed for sixty months forward, enabling the establishment of a forward price curve. A buyer will not have to spend additional on finding an immediate storage facility, as the physical delivery will take place only in the future. While the agreement is signed on a particular date, a buyer can get additional time to make final payments to settle the amount. An individual has the facility to short sell his/her silver. While not completely liquid, there is adequate liquidity on offer.

Why Trade in Silver Futures?

Compared with gold, silver is generally cheaper. An investor can buy more silver for less money, making it potentially popular choice for lower capitalization investors.

Silver is also more volatile than gold. For active investors this can make silver a potentially lucrative investment, as its tendency toward price swings can lead to sharp upward movements. Much of this volatility comes from the fact that silver is a smaller market than gold, and that gold tends to draw more investors seeking more stability in uncertain markets.

Associated with stocks and paper investments, however, silver is still generally seen as a safe haven for investment during market instability. Despite its volatility, investors will often move their money into precious metals at the beginning of a downturn.

Lastly, silver is seen as a more liquid safe investment than other non-market options like government bonds. While the high volatility of silver can make selling more difficult, as you may have to wait for the price you want, it is still easier to end your position than in a Treasury bond, and often for a better (if still relatively low) return.