Silver Price Futures: Everything You Need to Know


Together with gold and platinum, silver is one of the most popular precious metals. It is primarily used in jewelry, although it is also utilized in electronics and cutlery. Silver, like gold, is seen as an investment alternative. It is available in a variety of financial marketplaces. As a result, it is logical that people seek silver price predictions and projections.

In this guide, we will cover the newest Silver price prediction for the short and long term, as well as provide relevant information on investing in Silver, industry news, and where you can invest in Silver today – with minimal trading fees.

Investing in Silver

Silver Price

Silver achieved its greatest price to date half a century ago, when it reached US$48.70 per ounce. In recent years, investors have been wondering when the silver price will rise and if it will ever surpass its all-time high. Some silver bulls believe it will happen soon, with some market insiders even predicting a triple-digit silver price.

Although trading silver futures is not the same as owning physical silver, it is a popular technique for advanced investors with a higher risk tolerance. Continue reading to learn more about silver futures and the function they might play in a portfolio.

Silver Price Influencing Factors

The price of silver, like other assets available for purchase online, is notoriously unpredictable. Some ascribe it to the fact that silver, unlike gold, is used. This, however, is not the conclusion of the story. There are several elements that can influence the price of silver, which we shall address briefly:

  • Supply and availability – The price of silver responds slightly to supply and availability. If there is an abundance of silver and it becomes widely available, the price may fall modestly.
  • Silver demand and industrial uses – the greater the demand for silver, the higher the price. The higher the price, the more the precious metal is used for industrial applications.
  • At times of economic crisis, such as inflation and devaluation, many wealthy people buy silver as a hedge to protect their wealth. It is common for the price of silver to climb during such periods.
  • Political factors in countries with a significant supply or demand for silver might influence the price. Political issues may lead to limits on silver mining and commerce in such countries.
  • Additional factors influencing the price of silver include the price of gold, short-selling, the strength of the dollar, silver scrap, technology, interest rates, and government policy.

What exactly are silver futures?

Silver futures trading entails a contract between a buyer and a seller in which physical silver is purchased by the buyer and delivered by the seller for a defined price at a future date.

When it comes to silver futures, most traders (especially short-term traders) aren’t concerned with delivery; they often utilize cash to settle their long or short contracts before they expire or defer them until the next available delivery month. Generally, only a small number of silver futures contracts traded each year result in the delivery of the underlying metal.

Silver futures are traded on which exchanges?

Silver futures can be traded on a variety of global platforms, with the COMEX being a popular choice. CME Group, which bills itself as the world’s premier derivatives marketplace, includes the COMEX as one of four exchanges.

Monthly silver futures contracts are listed on the COMEX for the current calendar month, the next two calendar months, plus any January, March, May, or September within a 23-month period. If July and December come within a 60-month period beginning with the current month, they are also included.

Silver futures on the COMEX are valued in US dollars per troy ounce and traded in quantities ranging from 1,000 (known as micro contracts) to 2,500 (E-mini contracts) to 5,000 (full contracts), according to Investopedia. A price tag of US$14 for 5,000 troy ounces, for example, would cost around US$70,000.

In the case of a full contract, investors will either receive or send a 5,000 troy ounce COMEX silver warrant for a full-sized silver future, depending on whether they are the buyer or seller.

One warrant entitles the holder to comparable silver bars held by authorized depositories such as Brink’s Corporation (NYSE:BCO), HSBC Holdings (NYSE:HSBC,LSE:HSBA), Manfra Tordella & Brookes, ScotiaMocatta, Delaware Depository, and JPMorgan Chase & Co. (NYSE:JPM).

Silver futures contracts are also traded electronically on the Indian National Commodity & Derivatives Exchange (NCDEX), Dubai Gold & Commodities Exchange (DGCX), Multi Commodity Exchange of India (MCX), and Tokyo Commodity Exchange (TOCOM).

Why should you invest in silver futures?

Silver is a safe-haven asset that often follows in the footsteps of gold. During times of crisis, investors rush to precious metals, increasing demand, and if gold is too expensive, silver is a cheaper alternative.

Buyers are drawn to futures because they provide a limit on possible losses. Futures are frequently used by hedgers such as producers, portfolio managers, and consumers to offset price risk – their goal is to protect themselves against inflation while reaping the benefits of favorable price changes. Conversely, speculative investors can use silver futures to obtain exposure to the white metal for a fraction of the overall cost of a contract.

Of course, silver has the same potential for significant losses in the futures market – because of the leverage involved, investors might quickly lose assets in their accounts. As a result, experts frequently advise rookie market players to avoid futures trading unless they have a firm grasp on their preferred risk profile, time horizon, and cost consideration.


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