COMEX Metal Futures Options

COMEX Metal Futures and Options

The precious metals have been the most popular commodity to trade since the 1970s. Gold, silver, platinum and palladium tend to generate the most interest from investors during times of high inflation, political turmoil or economic distress. Gold is usually the most active of the complex, but silver can be very active and volatile at times. Platinum and palladium usually have much less and subdued activity.

The precious metals have been some of the most popular commodities to trade since the 1970s. Gold, silver, platinum and palladium tend to generate the most interest from investors during times of high inflation, political turmoil or economic distress. Gold is usually the most active of the complex, but silver can be very active and volatile at times. Platinum and palladium usually have much less activity.

Trading Gold Futures:

In times of political or economic turmoil, Gold is considered the “go to” metal. The majority of investors flock to gold as a safe haven investment.

Trading Silver Futures:

The price of silver usually moves in tandem with the price of gold. Sometimes silver is more volatile than gold as many speculators feels Silver offers more leverage.

Silver being an industrial metal supports price fluctuations that mirror economic activity. On the other hand, Gold is considered more of a reserve currency and safe haven investment than silver.

Trading Copper Futures:

Copper like silver is an industrial metal that is mainly used in building construction (electrical and plumbing).

Often Copper is considered an accurate indicator of economic growth. If demand for copper is increasing, an economic expansion is usually present or beginning.

The largest producers of copper are Chile, Peru, South Africa, North America, and Russia. The US, Russia, and Japan are the three largest consumers of copper. In the US, Arizona is responsible for about 65 percent of production.

Trading Platinum and Palladium Futures:

Platinum and palladium are often will be overshadowed by gold and silver. Trading volume is thin and thus less than silver and gold. Both of these metals are used for industrial purposes like catalytic converters, but platinum is also used to mint coins.