Silver is used in tableware and batteries, it is well known for its electrical and thermal conductivity, which allows it to be used in many different circumstances.
The demand for silver is constantly high, based on categorizations from the Silver Institute, silver alone can account for solar technology, electronics, soldering, bearings, medicine, automobile, and various other industries.
Statistically, silver strengthened an annual total of 1.05 Boz, an impressive 19 percent gain over 2020. Industrial fabrication rose by 9 percent to 508.2 Moz despite global logistical challenges. The rise in demand indicated a general recovery of industrial operations and the re-opening of business as businesses begin to recover from the COVID-19 pandemic.
While COMEX futures are a primary route for silver trading in Western markets, Silver Futures on the Shanghai Futures Exchange (SHFE) offer eastern market access for traders participating through the Qualified Foreign Investor (QFI) framework. (To apply for the QFI scheme, contact the Orient Futures Singapore team here)
This article will explain more about the silver market and the contract specifications for SHFE silver:
SHFE Silver Futures
Silver Futures is one of the main products together with gold futures from 上海期货交易所（SHFE）, and it is part of the list of products offered in the recently released QFI scheme.
Apart from physical factors that affect silver prices, silver futures trading is also affected by other market factors such as contango, backwardation, or feedback which require traders to pay close attention to the market environment or market prices.
Some of the other products from SHFE include copper, Aluminium, Zinc, Gold, Silver, Steel Rebar, Hot-rolled Coil, and various other metals.
On 1st November 2022, silver futures hit a three-week high, and it was recorded by Kitco News that Silver bulls’ next upside price objective is closing prices above solid technical resistance at the October high of $21.31… Next support is seen at $19.50 and then at today’s low of $19.085. Wyckoff’s Market Rating 5.5.
Silver Futures Contract Specifications
Benefits of Trading with Shanghai Future Exchange
The Silver Futures Contract has the following specifications:
Silver Futures by SHFE have a grade and quality specification of standard IC-Ag99.99 silver as prescribed in National Standard GB/Y 4135-2016, with silver content not less than 99.99%.
The contract size for the Rapeseed Oil Futures Contract has a minimum price fluctuation of 1 Yuan/kilogram with a minimum trading margin of 4% of the contract value. As a physical delivery good, the delivery period is three consecutive business days after the last trading day.
Trading Hours are from Monday to Friday, at these trading hours:
9:00 am – 11:30 am / 1:30 pm – 3:00 pm (Beijing time)
Silver Futures symbol: AG
Access type: QFI tradable
Night Trading in gold and silver futures from Shanghai Future Exchange began in May 2012, this is to facilitate trading during hours when the financial markets in the US are active.
Over the years, the exchange has become one of the largest commodities markets in China and it is ranked 10th among world derivatives exchanges by the Futures Industry Association in 2018.
Hence, trading with Shanghai Future Exchange will provide access to the established price history of Silver, bettering trade opportunities.
Secondly, trading at Shanghai Future Exchange would also open up opportunities for cross-arbitrage strategies, hedging, and price discovery. Some of the key services of the exchange include designing future contracts, arranging the listing of futures contracts, and implementing various risk management systems. These futures and procedural arrangements are provided to safeguard client interests and information regarding Shanghai Futures Exchange is also provided on the Shanghai Municipal People’s Government website here.
Lastly, trading with SHFE through 东证期货新加坡 will ensure efficiency and connectivity as the company is a direct overseas intermediary of the Chinese exchange.
Market News
-Ceicdata, 2022
The international market silver hit an all-time high of $49 an ounce in 2011. But, due to weak fundamentals, it sunk to a low of $11 by March 2020. While it is the worst performer among precious metals in 2022, it has recovered from a two-year low on the escalation of geopolitical tensions, recession worries in key economies, and seasonal demand.
-Economic Times, 2022
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