Silver is one of the most popular and useful metals in the world. The majority of the commodity is mined in Latin America and consumption is spread all over the world. The global influence of silver futures makes the contract a large-scale financial commodity.
The first trade date for silver futures was July 5, 1933.
Silver is a soft, ductile and malleable metal. Its thermal and electrical conductivity is the highest of all known metals. Much like copper futures, as a commodity, it is used in areas such as electronics, photography and as antiseptics, but most notably as a form of money and jewelry.
The first evidence of its use as currency dates back to around 700 B.C.E., in what is now Turkey. Silver has adorned tombs from Chaldea to China, and was one of the prime movers of European history after the discovery of the New World.
The British pound (sterling) derives its name directly from the fact that the currency was once considered to be worth one pound of sterling silver. More than 14 languages use synonymous terms for silver and money. The U.S. dollar prior to the Civil War was also backed by silver.
Silver is typically extracted from ore, usually of copper, gold and zinc. While silver futures are traded less commonly than gold futures, the market has played a significant role in affecting currencies and consistently moves in tandem with the rest of the metal futures markets.
Silver futures are traded on the following exchanges:
Silver futures follow the price of gold. As gold rises and falls, so do silver futures.Silver futures represent another method that investors use for hedging currency risk through precious metals as the dollar weakens.
You can learn more about Metals futures by downloading our guide, Free Fundamentals of Trading Metals Futures.
|Contract Symbol||Contract Unit||Price Quotation|
|GSI||5,000 troy ounce||dollars per ounce|
|Trading Exchange||Trading Hours||Tick Value|
|CME COMEX||18:00 - 17:15||$0.005/lb = $12.50|