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Mar 22, 2024 · The CME COMEX is the Exchange where futures are traded for gold, silver, and other commodities. The CME also allows futures buyers to turn their contracts into physical metal through delivery.
- What You May Have Thought About Comex
- Conclusion on Comex
- How A True Hedger Acts
It may seem reasonable to you to assume that the ‘net’ position on COMEX would be covered by COMEX actually ensuring that this amount of gold or silver is held in one of their four COMEX approved depositories that are all located in New York city. After all, delivery of the gold and silver is effected via electronic warrant. This would reassure us ...
The long and short of it is that COMEX is simply a ‘cash’ market that does not deal in gold or silver or other items at all. They simply provide a’ cash’ market where risks are laid off. Yes, physical dealers in gold and silver may well use the market to ‘hedge’ opposing real physical positions so that they don’t face a price risk and yes, traders ...
Many investors are puzzled by the importance of the COMEX Options & Futures markets on the price of gold. Take a look at the Diagram here [to enlarge it put your cursor on the corner and pull it diagonally] and you see that 86% of trading in gold Futures and Options takes place in London and New York. Many may well believe that this translates into...
Investing in commodities is a bit more advanced than more traditional stock market options, like stocks, bonds, and ETFs (exchange-traded funds). There is a significant risk of loss, but also provides opportunities for profit you may not find in the more traditional markets.
Apr 8, 2024 · COMEX is an abbreviation of The Commodity Exchange Inc. COMEX is the primary futures and options market for trading metals such as gold, silver, copper, and aluminum. COMEX merged with the New...
- Will Kenton
Apr 10, 2024 · COMEX is significant to investors because it provides a transparent marketplace for trading precious metals futures and options, facilitates price discovery, and is a crucial reference point for global metal prices.
Producers and consumers use COMEX to mitigate risk and hedge against future price movements. Traders and speculators buy and sell contracts to profit from short-term price changes. The continuous buying and selling of futures contracts on COMEX reflect market sentiment and serve as a reference point for metal prices globally.
People also ask
Why is COMEX important to investors?
Why do investors pay attention to Comex prices?
How does Comex affect the precious metals market?
What is a COMEX futures contract?
The COMEX exchange is a very large and very liquid metals trading platform. The spot price of metals like gold and silver is determined by trading on the COMEX exchange. While the exchange is key when it comes to price discovery and price risk hedging, it is not commonly used for actual physical deliveries.
