Silver News

London Metal Exchange to Offer Silver Futures and Options

The London Metal Exchange (LME) will begin offering silver futures and silver options this spring. These new offerings were prompted by the changing attitude toward silver. Traditionally, silver has been regarded as a precious metal, but it is increasingly being viewed as an industrial metal with many uses. The LME expects to attract industrial users of silver as well as those who trade silver as an investment.

The LME believes that potential users will welcome its contracts with a much higher tolerance than afforded elsewhere: plus or minus 2 percent.

Another important aspect is the LME intention to make granules deliverable, a growing sector of the market, especially in Europe. Granules are expected to be made available in October.

Silver News - April/May 1999