China offering an alternative in silver futures.

4 posts / 0 new
Last post
Anonymous (not verified)
China offering an alternative in silver futures.

China to launch silver future officially next Thursday
By Liyuchuan | 2012-05-04 10:41
CSJ--Friday, May 04, 2012

China would launch the silver future contract on May 10, Huo Ruirong, deputy general manager with the Shanghai Futures Exchange (SHFE), said in a press conference Thursday.

An official with the SHFE said that the exchange is considering carrying out night trading for noble metals.

The silver futures trading unit is 15 kg / hand, the daily price fluctuation limit the previous day's settlement price does not exceed ± 5%, the minimum trading margin 7% of the value of the contract, the minimum change in price of one yuan / kg, according to the previously released silver futures standard contract draft.

The SHFE had launched silver future mocking trade on May 2, which is applauded by the market.

kaibo888 (not verified)

The ever climbing industrial purposes makes it more than attractive and silver bullion's unique properties make it difficult to find substitutes for the precious metal.

BEIJING(BullionStreet) : With the opening of China's silver futures trade next week, the white metal might become more attractive to investors, analysts said.

They said China is world's largest silver producer and user and the introduction will add one more tool for its local industry to better manage the risks associated with price volatility.

China's biggest metals bourse, Shanghai Futures Exchange will offer silver futures from next week after draft contract rules received a positive response from potential investors.

The ever climbing industrial purposes makes it more than attractive and silver bullion's unique properties make it difficult to find substitutes for the precious metal, they added.

It is estimated that three-quarters of the silver bullion mined out of the ground each year is already earmarked for industrial uses. This leaves less and less silver bullion for investment purposes.

However, analysts said this doesn't make silver bullion less attractive but makes it more attractive as an investment, because the supply/demand fundamentals point to a continued scarcity of the precious metal going forward, as it is going to be used in many more industrial applications.

Silver has the highest electrical conductivity of any element known to man and the highest thermal conductivity of any metal, making its industrial uses critical.

China's entry into Silver futures will surely help the white metal to break the $50 an ounce barrier this year, analysts added.

kaibo888 (not verified)
SHFE sets Silver futures benchmark at 6,166 yuan/kg

China's Shanghai Futures Exchange will start trading silver futures from Thursday with a a bench mark price of 6,166 yuan per kilogram.

SHANGHAI(BullionStreet): China's Shanghai Futures Exchange will start trading silver futures from Thursday with a bench mark price of 6,166 yuan per kilogram.

In a statement, SHFE said silver futures contracts launched include AG1209, AG1210, AG1211, AG1212, AG1301, AG1302, AG1303 and AG1304 and daily gain or loss limit has been temporarily set at 7%, which is doubled for the first trading day.

Transaction fees have been temporarily set at 0.008 percent of turnover. No charges will be induced for closing intra-day positions on the first day of trading.

Arbitrage trading will be active following start of silver futures trading, which is expected to push up silver prices for the near term in China.

Local availability of silver contracts and reduced lot size may make silver more accessible to Chinese investors now, than in the past. As demand for the metal may pick up, it would prove bullish for silver on a global scale by providing a new route for money to flow into the market.

Analysts said silver futures trading in the China will help promote the rational allocation of silver resources and balanced silver supply and demand in the market.

However, regulators in China are hoping to see more than just investors benefit from this new trading vehicle.

With silver contracts on home land, silver miners and industrial users will have the ability to hedge at home.

On Wednesday, Shanghai Gold Exchange T+D silver price closed at RMB 6,162/kg.

kaibo888 (not verified)
Signs or dead-cat bounce

From the opening of ASX markets this morning; first, PGMs noted a slight recovery following NYMEX close. Then Asian markets followed up with mixed signals until 1500 hrs CST. PMs have started a noted recovery that may indicate either of the above - signs of a turn-around or just a dead-cat bounce.

Either way it is good to see some movement signalling that all is perhaps forgiven and not forgotten. Keep your fingers crossed that finally we might be viewing a bottom in this battle against paper and the bears.

I certainly considered dumping but cancelled my stop loss at 11am even though it was still declining. I intended to add to my positions today and will float another 5k across to cover the potential for recovery tonight.

'Major Bottom in Precious Metals Could Occur This Week'

Happy days!

Log in to post comments


* Join and receive the Two Fold Formula guide to picking stocks and combine tested fundamental valuation metrics with technical analysis.

*Align yourself with the big trends of the stock market and be alerted when these trends change.

*Receive free updates when we see an investment opportunity in an emerging sector before the crowd gets in.