Educational Resource
Understanding Precious Metals Futures
A standardized contract to buy or sell gold, silver, platinum, or palladium at a future date — widely used by hedgers and speculators alike.
Active Metals Contracts
Real-time snapshots of major precious-metals futures benchmarks traded on global exchanges.
Why Metals Futures Matter to Global Markets
Trade on evedex. Precious metals futures are among the most liquid derivative instruments, connecting miners, refiners, jewelers, and institutional investors.
Core Characteristics of Metals Futures Trading
Standardized Contract Size
Gold trades in 100-troy-ounce lots; silver in 5,000-ounce contracts. Fixed specifications reduce counterparty negotiation.
Leverage Through Margin
Initial margin typically ranges from 5–15% of contract value, amplifying both profit potential and downside risk.
Physical or Cash Settlement
Most contracts close before expiry; those held to maturity can trigger vault delivery or cash equivalent at final settlement price.
Regulated Exchange Clearing
Clearinghouses guarantee trade performance, marking positions to market daily and enforcing margin calls when needed.
Hedging Production Risk
Mining companies sell futures contracts forward to lock in revenue and stabilize cash flow against spot-price volatility.
Common Questions
Spot price, time to expiry, interest rates, storage costs, and convenience yield all influence the futures price. Backwardation or contango reflects the balance between these factors and near-term supply–demand dynamics.
Yes, but most retail traders close positions before the delivery month. If you hold to expiry, the exchange assigns a warehouse receipt, and you arrange vault pickup or pay storage fees.
You post initial margin — a fraction of contract value — to open a position. The clearinghouse marks your account to market daily; if losses exceed maintenance margin, you face a margin call requiring additional funds.
Spot gold is immediate ownership, settled T+2. Gold futures are derivative contracts with deferred settlement dates, traded on margin, and priced to reflect carry costs over time.
Yes. In the U.S., the CFTC oversees futures exchanges like COMEX; similar regulators govern markets in London, Shanghai, and Tokyo. EVEDEX provides educational resources on compliance and best practices for traders worldwide.