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
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.
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.