Before the listing of silver futures, there were mainly two silver spot quotation platforms in China, one was the delayed T+D trading of silver in Shanghai Gold Exchange, and the other was China Silver Network. Silver T+D has the characteristics of margin trading and deferred expense risk, and the vast majority of market participants are individual investors. Its quotation is often higher than that of Baiyin.com, China, which makes silver enterprises and traders mostly refer to the price of Baiyin.com, China to determine the spot price of silver. However, due to the discontinuity and limited credibility of China Silver Network, the spot quotation system of silver in China is not so transparent.
Since the listing of silver futures, with the increasing number of market participants and the maturity of varieties, the spread distribution between silver contracts has become more and more rational. Taking the current silver futures contract as an example, the spread distribution from 1305 silver contract to 13 12 silver contract is at the level of 25-35 yuan/kg, and the annualized rate of return of monthly spread is in the range of 6%-8%. The reasonable spread distribution provides a reasonable and fair reference standard for the spot price of silver. The listing of silver futures provides an internal and external arbitrage platform with foreign COMEX silver futures, and the reasonable fluctuation of the internal and external price of silver futures also makes the domestic silver futures price authoritative with global significance.
Second, the hedging function of silver futures provides an efficient risk management platform for domestic silver enterprises.
It should be said that silver is one of the most volatile varieties in the whole commodity. It can also be said that in the effective market of precious metals, the only certainty is the uncertainty of price. Since the silver price peaked in April 20 1 1, we have encountered a silver price waterloo almost every once in a while. Last week, for example, the silver week fell by nearly 1 1%. Production enterprises or spot enterprises with a large amount of silver inventory will undoubtedly suffer a large inventory discount if they do not have corresponding hedging positions; Enterprises that sell hedges in the futures market can use the profit from selling hedges to make up for the loss of spot price reduction, reduce the profit fluctuation of enterprises and manage the inventory risk caused by the uncertainty of silver price. The same is true for banks. First, the price discovery function of silver futures has been brought into play and has become the pricing benchmark of the domestic silver market.
Before the listing of silver futures, there were mainly two silver spot quotation platforms in China, one was the delayed T+D trading of silver in Shanghai Gold Exchange, and the other was China Silver Network. Silver T+D has the characteristics of margin trading and deferred expense risk, and the vast majority of market participants are individual investors. Its quotation is often higher than that of Baiyin.com, China, which makes silver enterprises and traders mostly refer to the price of Baiyin.com, China to determine the spot price of silver. However, due to the discontinuity and limited credibility of China Silver Network, the spot quotation system of silver in China is not so transparent.
Since the listing of silver futures, with the increasing number of market participants and the maturity of varieties, the spread distribution between silver contracts has become more and more rational. Taking the current silver futures contract as an example, the spread distribution from 1305 silver contract to 13 12 silver contract is at the level of 25-35 yuan/kg, and the annualized rate of return of monthly spread is in the range of 6%-8%. The reasonable spread distribution provides a reasonable and fair reference standard for the spot price of silver. The listing of silver futures provides an internal and external arbitrage platform with foreign COMEX silver futures, and the reasonable fluctuation of the internal and external price of silver futures also makes the domestic silver futures price authoritative with global significance.
Second, the hedging function of silver futures provides an efficient risk management platform for domestic silver enterprises.
It should be said that silver is one of the most volatile varieties in the whole commodity. It can also be said that in the effective market of precious metals, the only certainty is the uncertainty of price. Since the silver price peaked in April 20 1 1, we have encountered a silver price waterloo almost every once in a while. Last week, for example, the silver week fell by nearly 1 1%. Production enterprises or spot enterprises with a large amount of silver inventory will undoubtedly suffer a large inventory discount if they do not have corresponding hedging positions; Enterprises that sell hedges in the futures market can use the profit from selling hedges to make up for the loss of spot price reduction, reduce the profit fluctuation of enterprises and manage the inventory risk caused by the uncertainty of silver price. The same is true for banks.
At present, the annualized yield of silver monthly spread is between 6% and 8%, which can generally cover the delivery cost and capital cost of selling hedging by production enterprises; In addition, due to the monthly grade structure of foreign COMEX silver, the monthly exchange rate of foreign and domestic silver generally shows the characteristics of high inside and low outside, which also attracts enterprises that sold hedging in foreign COMEX market in the early stage to turn to the domestic market. As far as we know, first, the price discovery function of silver futures has been brought into play and has become the pricing benchmark of the domestic silver market.
Before the listing of silver futures, there were mainly two silver spot quotation platforms in China, one was the delayed T+D trading of silver in Shanghai Gold Exchange, and the other was China Silver Network. Silver T+D has the characteristics of margin trading and deferred expense risk, and the vast majority of market participants are individual investors. Its quotation is often higher than that of Baiyin.com, China, which makes silver enterprises and traders mostly refer to the price of Baiyin.com, China to determine the spot price of silver. However, due to the discontinuity and limited credibility of China Silver Network, the spot quotation system of silver in China is not so transparent.
Since the listing of silver futures, with the increasing number of market participants and the maturity of varieties, the spread distribution between silver contracts has become more and more rational. Taking the current silver futures contract as an example, the spread distribution from 1305 silver contract to 13 12 silver contract is at the level of 25-35 yuan/kg, and the annualized rate of return of monthly spread is in the range of 6%-8%. The reasonable spread distribution provides a reasonable and fair reference standard for the spot price of silver. The listing of silver futures provides an internal and external arbitrage platform with foreign COMEX silver futures, and the reasonable fluctuation of the internal and external price of silver futures also makes the domestic silver futures price authoritative with global significance.
Second, the hedging function of silver futures provides an efficient risk management platform for domestic silver enterprises.
It should be said that silver is one of the most volatile varieties in the whole commodity. It can also be said that in the effective market of precious metals, the only certainty is the uncertainty of price. Since the silver price peaked in April 20 1 1, we have encountered a silver price waterloo almost every once in a while. Last week, for example, the silver week fell by nearly 1 1%. Production enterprises or spot enterprises with a large amount of silver inventory will undoubtedly suffer a large inventory discount if they do not have corresponding hedging positions; Enterprises that sell hedges in the futures market can use the profit from selling hedges to make up for the loss of spot price reduction, reduce the profit fluctuation of enterprises and manage the inventory risk caused by the uncertainty of silver price. The same is true for banks.
At present, the annualized yield of silver monthly spread is between 6% and 8%, which can generally cover the delivery cost and capital cost of selling hedging by production enterprises; In addition, due to the monthly grade structure of foreign COMEX silver, the monthly exchange rate of foreign and domestic silver generally shows the characteristics of high inside and low outside, which also attracts enterprises that sold hedging in foreign COMEX market in the early stage to turn to the domestic market. As far as we know, upstream major producers such as Jiangxi Copper (600362, shares bar), Yunnan Copper (000878, shares bar), Tongling Nonferrous Metals (000630, shares bar), Admiralty Gold (600489, shares bar), intermediate traders and upstream major producers such as Jiangxi Copper (60036, play.
Before the listing of silver futures, there were mainly two silver spot quotation platforms in China, one was the delayed T+D trading of silver in Shanghai Gold Exchange, and the other was China Silver Network. Silver T+D has the characteristics of margin trading and deferred expense risk, and the vast majority of market participants are individual investors. Its quotation is often higher than that of Baiyin.com, China, which makes silver enterprises and traders mostly refer to the price of Baiyin.com, China to determine the spot price of silver. However, due to the discontinuity and limited credibility of China Silver Network, the spot quotation system of silver in China is not so transparent.
Since the listing of silver futures, with the increasing number of market participants and the maturity of varieties, the spread distribution between silver contracts has become more and more rational. Taking the current silver futures contract as an example, the spread distribution from 1305 silver contract to 13 12 silver contract is at the level of 25-35 yuan/kg, and the annualized rate of return of monthly spread is in the range of 6%-8%. The reasonable spread distribution provides a reasonable and fair reference standard for the spot price of silver. The listing of silver futures provides an internal and external arbitrage platform with foreign COMEX silver futures, and the reasonable fluctuation of the internal and external price of silver futures also makes the domestic silver futures price authoritative with global significance.
Second, the hedging function of silver futures provides an efficient risk management platform for domestic silver enterprises.
It should be said that silver is one of the most volatile varieties in the whole commodity. It can also be said that in the effective market of precious metals, the only certainty is the uncertainty of price. Since the silver price peaked in April 20 1 1, we have encountered a silver price waterloo almost every once in a while. Last week, for example, the silver week fell by nearly 1 1%. Production enterprises or spot enterprises with a large amount of silver inventory will undoubtedly suffer a large inventory discount if they do not have corresponding hedging positions; Enterprises that sell hedges in the futures market can use the profit from selling hedges to make up for the loss of spot price reduction, reduce the profit fluctuation of enterprises and manage the inventory risk caused by the uncertainty of silver price. The same is true for banks.
At present, the annualized yield of silver monthly spread is between 6% and 8%, which can generally cover the delivery cost and capital cost of selling hedging by production enterprises; In addition, due to the monthly grade structure of foreign COMEX silver, the monthly exchange rate of foreign and domestic silver generally shows the characteristics of high inside and low outside, which also attracts enterprises that sold hedging in foreign COMEX market in the early stage to turn to the domestic market. From what we know about ASD, the main upstream producers are Jiangxi Copper (600362, shares bar), Yunnan Copper (000878, shares bar), Tongling Nonferrous (000630, shares bar), Admiralty Gold (600489, shares bar), intermediate traders and 2, shares bar), and Yunnan Copper (.
At present, the annualized yield of silver monthly spread is between 6% and 8%, which can generally cover the delivery cost and capital cost of selling hedging by production enterprises; In addition, due to the monthly grade structure of foreign COMEX silver, the monthly exchange rate of foreign and domestic silver generally shows the characteristics of high inside and low outside, which also attracts enterprises that sold hedging in foreign COMEX market in the early stage to turn to the domestic market. As far as we know, the main upstream producers are Jiangxi Copper (600362, stock bar), Yunnan Copper (000878, stock bar), Tongling Nonferrous (000630, stock bar), Admiralty Gold (600489, stock bar), intermediate traders and