What are Silver Futures? | INN
Investing in silver futures is one of many options for those interested in entering the silver market.
The highest price for silver to date was reached half a century ago, when the precious metal hit US$48.70 per ounce. With the silver price hitting US$44 per ounce following the US Federal Reserve’s September 2025 rate cut, investors are wondering if the white metal will it break past its record. Some silver bulls believe that could happen in the near future, with a few market insiders even calling for a triple-digit silver price.
Trading silver futures is not the same as owning physical bullion, but it’s a popular strategy for advanced investors with a higher risk tolerance. Read on to learn more about how silver futures work and what role they can play in a portfolio.
What are silver futures?
Silver futures trading involves an agreement between a buyer and a seller in which physical silver will be bought by the buyer and delivered by the seller for a fixed price at a date set in the future.
Most traders (especially short-term traders) aren’t concerned about delivery when it comes to silver futures — they typically use cash to settle their long or short positions before they expire or defer them to the next available delivery month. Overall, very few silver futures contracts traded each year actually result in the delivery of the underlying commodity.
What exchanges are silver futures traded on?
Silver futures can be traded on various global exchanges, but the COMEX is a common option. The COMEX is one of four exchanges that make up CME Group, which bills itself as the world’s leading derivatives marketplace.
On the COMEX, monthly silver futures contracts are listed for the current calendar month or the following two calendar months, plus any January, March, May or September within a 23 month period. July and December are also included should they fall within a 60 month period, beginning with the current month. The material offered must assay to a minimum of 999 fineness.
According to Investopedia, silver futures on the COMEX are quoted in US dollars per troy ounce and are traded in units of various sizes, ranging from 1,000 (known as micro contracts) to 2,500 (E-mini contracts) to 5,000 (full contracts) troy ounces. For example, a price quote of US$24 for 5,000 troy ounces would cost approximately US$120,000.
In the case of a full contract, investors who wait for their silver futures to mature will either receive or deliver a 5,000 troy ounce COMEX silver warrant for a full-sized silver future, depending on if they are the buyer or the seller. One warrant entitles the holder to ownership of equivalent bars of silver in designated depositories, such as with the The Brink’s Co (NYSE:BCO), HSBC Holdings (NYSE:HSBC, LSE:HSBA), Manfra Tordella & Brookes, Delaware Depository and JPMorgan Chase & Co. (NYSE:JPM).
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