1. Money

Silver Futures Profile

By

Silver Futures Contracts:

  • Ticker Symbol: SI
  • Exchange: NYMEX
  • Trading Hours: 8:25 AM until 1:25 PM EST.
  • Contract Size: 5,000 troy ounces
  • Contract Months: Mar, May, Jul, Sep, Dec.
  • Price Quote: price ounce. Ex $11.25 per ounce
  • Tick Size: one-half cent (0.5¢ or $0.005) per troy ounce, equivalent to $25.00 per contract.
  • Last Trading Day: Trading terminates at the close of business on the third to last business day of the maturing delivery month.

Silver Fundamentals:

Silver is considered a precious metal but not as rare as gold.

Silver is used in the production of coins, but not nearly as much since the 1960s.

Silver is also considered an industrial metal where about half of the US production of silver is used in photographic film. Silver is also used in the production of many electrical devices and of course jewelry.

Most newly mined silver comes from Mexico, Peru, Canada, the US, Australia and Russia. Silver production also comes from the recycling of camera and x-ray films, jewelry and melting of silver coins - especially when the price of silver has been rising.

Silver Futures Reports:

The price of silver is somewhat dependant on the US and world economies. Strong economies tend to increase the price of silver, so watch economic reports including the Gross Domestic Product(GDP) quarterly reports.

Also watch the Consumer Price Index reports. These reports measure the amount of inflation in the economy. Higher inflation tends to move silver prices higher.

Silver Warehouse Stocks - this report gives you a daily amount of silver inventory on hand. Decreasing inventories are supportive for the price of silver to move higher.

Tips on Trading Silver Futures:

  • Silver and gold tend to move together. Watch the spread between the two prices to move to one extreme. Traders might buy silver and sell gold at the high end of the spread.
  • Silver is an excellent commodity to buy if you are expecting inflation.
  • Be careful when holding silver futures overnight. The price of silver can make big moves from one day to the next. An unexpected crisis around the world can pop-up anytime . It is not uncommon for the price of silver to open 20-30 cents from the previous days close. Likewise, the price can fall that quickly overnight when a crisis is averted.

©2014 About.com. All rights reserved.