Discover the Latest Silver Price Trends in COMEX for Informed Futures Trading
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COMEX (previously known as Commodity Exchange Inc.) is a marketplace for trading in futures and options of commodities that include:
Platinum
Gold
Silver
Copper
Steel
Aluminium
Palladium
COMEX is a trading division that comes under the Chicago Mercantile Exchange (CME) Group. The second most traded commodity on COMEX after gold is silver, with an average daily trading volume (ADV) of over 1 Lakh contracts.
So, if you are planning to trade in silver futures, COMEX serves as the clearing house. COMEX allows you to trade in silver futures of regulated sizes that sometimes can even be mini or micro versions.
Before you decide on purchasing silver futures, it is advisable to check the prevailing silver price in COMEX. Silver prices fluctuate daily as a number of economic and geopolitical factors influence it in the background.
Since COMEX is the largest silver futures and options, the fluctuations in this commodity exchange trigger price fluctuations in other regional markets. Hence, it is important for investors to be aware of the trend in silver prices on COMEX.
Note that certain local and geopolitical factors influence the rate of trading price in the commodity exchange market. Adequate knowledge about how these factors impact silver prices can help you better optimise your returns on silver futures.
FAQS on Silver Price in COMEX
What size lot is silver in COMEX?
The average value of the COMEX silver futures contract is around $85,000, i.e., the average lot size of silver is 5,000 ounces.
However, you can also trade in silver futures in COMEX in smaller lot sizes, viz., E-mini and E-micro, for 2,500 troy ounces and 1,000 troy ounces, respectively.
Can I buy silver on COMEX?
Yes, you can buy silver futures on COMEX.
What is COMEX Silver Rule 7?
In late 1979, the silver futures prices witnessed a rapid hike due to the falling value of the US Dollar and market manipulation by two private investors. In fact, the price almost doubled as the silver price in COMEX reached US$50 by the end of the year.
In 1980, the US government, concerned with the manipulation of the country’s silver reserves, enacted Silver Rule 7. This rule mandated tight provisioning for margin requirements for trade in silver futures.
This burst the inflationary bubble of silver futures trading, and the prices dropped dramatically. On March 27, 1980, often referred to as the “Silver Thursday”, the silver price in COMEX fell from the high of US$ 48.70 to US$11.
What is the COMEX 589 silver Rule?
NYMEX (New York Mercantile Exchange (NYMEX) introduced the COMEX 589 Silver Rule in 2014 to apply certain limits on the fluctuations of silver futures. The primary aim of bringing this rule was to promote cash-futures price convergence and price discovery.
At the beginning of the trading day, the COMEX determines the upper and lower fluctuation limit based on the previous day’s price. If the silver price in COMEX touches either of these limits, it results in a triggering event.
This results in a two-minute pause in trade in the market for monitoring purposes, which may be followed by a halt in trade for the entire day. The trading will resume the next trading day from the price where it was closed the day before.
Why is the silver price in COMEX significant?
COMEX is the world’s largest commodity futures and options market. The silver price on COMEX has a significant impact on the trading price of silver in other regional markets as well.
Where can I track the silver price in COMEX?
You can track silver prices in COMEX on the Silver Overview page of the CME Group website.
