The JSE’s Silver Futures and Options Derivatives provide local investors with exposure to international silver prices. Silver Futures and Options are listed and traded on the New York Mercantile Exchange (NYMEX) through its Commodity Exchange (COMEX) division, a subsidiary of the CME group. Contracts are cash settled in rands and can easily be accessed through JSE Commodity Derivatives members.
Who is this for?
Silver is used as a store of value, silver is widely used as an industrial metal for commercial use. Silver futures and options are typically used by commercial producers and consumers of silver as a hedging tool against price risk. These contracts also provide opportunities for portfolio diversification and can be used by speculators seeking a profit on short-term movements in the futures contract price.
- Offers ongoing trading opportunities;
- Provides liquidity and price transparency via a central point of price information;
- Enables effective price risk management and evaluation of current and future world supply and demand;
- Enables identification of short- and long-term price and volatility patterns;
- Hedge or gain exposure based on expectation of directional price, spread movement or volatility;
- Suitable as a portfolio diversification tool;
- This contract is affected by mine production, industrial demand and the general health of the world economy. The price of silver can therefore be volatile beyond what many consider acceptable price risk.
How to get it
To access this product, register as a client with one of the JSE’s Commodity Derivatives or Equity Derivatives members , deposit the required initial margin and sell or buy according to your needs.
- No limits apply to individuals, foreigners or corporate entities;
- Pension funds and long-term insurance companies are subject to their 25% foreign allocation limits;
- Asset managers and registered collective investment schemes are subject to their 35% foreign allocation limits
- For the full details relating to qualifying factors, speak to your broker.