Silver Futures This contract is based on the precious metal, silver, which serves as an inflation hedge and also has many industrial applications.
- Why would you want to trade Silver Futures?
1. Since the price of gold is a key driver in silver prices, can be used as an economic hedge.
2. 50% of silver consumption comes from computer manufacturing, medical equipment, photography and jewelry.
3. Can be used as protection against negative impacts on companies which use a lot of precious metal.
- How do you trade Silver Futures?
Precious metals such as gold, silver, platinum and palladium are used to manage risk or to serve as a safe haven for capital during times of financial uncertainty. There are hedging opportunities and ways to manage risk around supply and demand for both industrial and commercial uses.