Silver Futures Chart Review

Silver Futures Chart

It’s essential to understand the basics of silver futures charts if you are seriously considering investing in silver bullion market. Silver futures prices are a driving force for determining the daily spot price of silver, the foundation of the silver market. Silver futures charts provide silver market players with essential information on the value of silver commodity on a given market day on a minute by minute basis.

Let’s briefly take a look at what silver futures really are and how they can affect the current market price of silver. Silver future is a standard commodity contract to deliver or purchase a set amount of silver at agreed price for an agreed maturity date. It’s worth noting, that only 1% of total silver futures contracts result in the actual delivery of silver goods, most of silver contracts are resold before they mature to gain profit on the difference between purchase and sale price of futures. Silver futures chart reflects current future standings, thus the market price of silver is determined daily based on the last two minutes of trades at COMEX (Commodity Exchange) in New York.

Silver contracts provide necessary balance and stability for both parties, silver sellers and buyers. Silver sellers are usually large silver mining corporations that insure product distribution at favorable prices before they even begin the production stage. Silver purchasers, on the other hand, need assurance that they can buy a certain amount of silver necessary for their production process at prices that are good for them. It’s essentially a win-win situation for each and every player of the silver market.

formats like intraday minute by minute, daily, monthly and historical formats.