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AN INSIGHT
TO DAY TRADING

TOP 3 METAL FUTURES


In our technology driven world, metals have never been more significant for society to keep pushing ahead and keep up with the framework currently set up. Worship and reliance on metals is everything except new that also the mining and handling of metals has developed with the way of life that depend on them. Historically, metals have always been seen as an investment regardless of the actual industrial development and growing demand with it. Being a symbol of wealth and power metals always had an impact on society’s cultures and respective markets.


The most popular metals markets with regards to volume are gold, silver and copper which can be traded on the Commodity Exchange Inc. (COMEX) and the London Metal Exchange (LME). Even though, these are not the only exchanges that trade metals they are the most commonly used for futures and options.


GOLD

Gold is a dense, bright yellow metallic element with a high luster and is unaffected by air, heat, moisture and most solvents. Gold has been desired for centuries for its unique nature being rare, beautiful and nearly indestructible. Throughout history, gold has been treasured for its natural beauty and radiance. According to the World Gold Council, 88% of the global gold demand is allocated to fabrication like jewelry (52%), bars and coins (27%) and technology (9%) whereof 11% are allocated to financial products like ETFs or similar products (3%) or the use in central banks (3%).


Gold is produced from mines on every continent except for Antarctica. Since gold is essentially indestructible, a significant part of the gold that has at has been mined at any point is still existing in the one or other form. The biggest miner of gold in the United States is the territory of Nevada followed by Alaska and California with a large distance.


In 1792, the United States first assigned a formal monetary role for gold when congress set the country's money on a bimetallic standard, meaning its currency was backed by gold – also known as the gold standard. In 1971, however, the government cut off the connection between the U.S. dollar and gold, which prompted the breakdown of the Bretton Woods global payment system. From that point forward, the price of gold and paper currencies have moved freely. The United States and other central banks, today, hold actual gold reserves primarily as a store of value.


Gold futures are traded at multiple exchanges all over the world with the CME Group in the United States being the most popular metal futures with regards to traded volume.

​GOLD FUTURES - CONTRACT SPECS

Contract Unit

100 troy ounces

Price Quotation

U.S. dollars and cents per troy ounce

Trading Hours

Sunday - Friday 5:00 p.m. - 4:00 p.m. CT

Minimum Price Fluctuation

0.10 per troy ounce = $10.00

Product Code

GC

Listed Contracts

Feb, Apr, Jun, Aug, Oct & Dec

Settlement Method

Deliverable

Last Trading Day

Third last business day of the contract month.

Last Delivery Date

Delivery may take place on any business day beginning on the first business day of the delivery month but not later than the last business day of the current delivery month.

Settlement Procedures

Exchange

COMEX


SILVER

Referring to the Silver Institute, silver is a glossy white metal with a some unique characteristics. It is flexible, malleable, and perfectly radiant. Silver is, additionally, exceptionally reflective and conducts power incredibly well while even being capable of killing bacteria. These attributes make silver a significant metal in a variety of potential applications including jewelry, energy, and medical appliances. However, these attributes just scratching the surface why silver is significant in the worldwide economy. Silver is extremely rare and, alongside gold and six platinum bunch metals, belongs to the group of precious metals. For centuries, individuals have kept silver as a store of significant worth.


Mining silver started around 5,000 years ago in Asia. Almost 1,800 years later, the Greek Empire started mining silver for the use of a currency and during the flourishing Roman Empire silver turned into a fundamental exchanging commodity along Asian trade routes. Decades later, in the fifteenth century, the Spanish success in conquering the new world illustrated a key point in the commodity’s existence so far. Significant expansions in silver mining in Bolivia, Peru, and Mexico happened in the years between 1500 and 1800. These three countries represented 85% of the world's silver production as the Spanish expanded presence in the South American countries. Silver mining began in the United States around 1850. Further discoveries in Australia, Central America, and Europe have accelerated the production around the world.


Despite its long history of mining, production and reserves are extremely limited. According to a report by the US Geological Survey, the total sum of silver that has been mined from ancient times until 2001 was estimated to 1.26 million metric tons. A significant part of that was mined during the past 62 years.


Today, silver futures are the second most traded metal commodity at the COMEX which is part of the CME Group in the United States.

​SILVER FUTURES - CONTRACT SPECS

Contract Unit

5,000 troy ounces

Price Quotation

U.S. dollars and cents per troy ounce

Trading Hours

Sunday - Friday 5:00 p.m - 12:25 p.m. CT

Minimum Price Fluctuation

0.005 per troy ounce = $25.00

Product Code

SI

Listed Contracts

Jan, Mar, May, Jul, Sep & Dec

Settlement Method

Deliverable

Last Trading Day

Third last business day of the contract month.

Last Delivery Date

Delivery may take place on any business day beginning on the first business day of the delivery month but not later than the last business day of the current delivery month.

Settlement Procedures

Exchange

COMEX


COPPER

Published by Barchart, the word copper originates comes from the name of the Mediterranean island Cyprus which was an essential source of the metal. Over the past 10,000 years, copper is oldest metal utilised by humans. Archaeologists discovered parts of a water plumbing system with copper tubes in the Pyramid of Cheops in Egypt that were still in serviceable condition even after more than 5,000 years.


In previous years as today, copper is one of the most used industrial metals; especially due to its phenomenal conductor of electricity, strong corrosion-resistance characteristics and its exceptional flexibility. Further, copper is used to create combinations of metal such as brass (copper-zinc alloy) or bronze (copper-tin alloy) making the original copper metal much harder and stronger.


According to Statista, 43% of the yearly copper consumption is allocated to building & construction, 21% to electric and electronic products, 19% to transportation equipment, 10% to consumer and general products whereas 7% is allocated to industrial machinery and equipment.


Copper futures are traded globally at various exchanges. The largest exchange with regards to traded volume is the CME Group in the United States where copper ranks third among the metal futures, followed by the London Metal Exchange (LME) and the Shanghai Futures Exchange.

​COPPER FUTURES - CONTRACT SPECS

Contract Unit

25,000 pounds

Price Quotation

U.S. dollars and cents per pound

Trading Hours

Sunday - Friday 5:00 p.m. - 4:00 p.m. CT

Minimum Price Fluctuation

0.0005 per pound = $12.50

Product Code

HG

Listed Contracts

Mar, May, Jul, Sep & Dec

Settlement Method

Deliverable

Last Trading Day

Third last business day of the contract month.

Last Delivery Date

Delivery may take place on any business day beginning on the first business day of the delivery month but not later than the last business day of the current delivery month.

Settlement Procedures

Exchange

COMEX