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Silver History

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Silver Contract History

If you are interested in trading silver futures it is helpful to become familiar with the history of the silver market. Silver has attracted man's interest for thousands of years. In ancient times, silver deposits were plentiful on or near the earth's surface. Relics of ancient civilizations, include jewelry, religious artifacts, and food vessels formed from the durable, malleable metal.

In 1792, silver assumed a key role in the United States monetary system when Congress based the currency on the silver dollar, and its fixed relationship to gold. Silver was used for the nation's coinage until its use was discontinued in 1965.

At the turn of the century, an even more important economic function was emerging for silver, that of an industrial raw material.

Today, silver is sought as a valuable and practical industrial commodity, and as an appealing investment. The largest industrial users of silver are the photographic, jewelry, and electronic industries.

Newly mined metal provides most of the needed supply, and Mexico, the United States, and Peru are the primary producers. Secondary silver sources include coin melt, scrap recovery, and dishoarding from countries where export is restricted. Secondary sources are particularly price sensitive.

Mining companies, fabricators of finished products, and users of silver-content industrial materials can use the COMEX Division silver futures and options contracts to manage their price risk. As a precious metal, silver also plays a role in investment portfolios.

Currently we like silver more than gold. Silver is a hybrid metal. It is a precious metal that can be used as a safe haven, as a store of wealth, and it is a key industrial metal. There are no real substitutes for silver in the electronics industry. Silver is the greatest electrical conductor and is used in switches because it does not spark. Much of the silver used by industry ends up in the dumps in economically unrecoverable quantities.

NYMEX Metals Complex

Click on the link above to download a very informative .pdf brochure entitled "Metals Complex". It was published by the New York Mercantile Exchange. This is a must read guide for any speculator or hedger considering an trade in the gold futures or gold options.

Click here to contact a commodities broker with experience in the silver market.

Commodity trading is not suitable for everyone. The risk of loss in trading can be substantial. The risk of loss in trading can be substantial. This material has been prepared by a sales or trading employee or agent of Van Commodities, Inc. and is, or is in the nature of, a solicition. This material is not a research report preparfed by Van Commodities, Inc. Research Department. Please view our Risk Disclaimer.

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