Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (22384)	9/15/2016 10:25:24 AM
From: Goose94	Read Replies (1) \| Respond to of 205758

CME To Launch Gold/Silver Ratio, and Spread Contracts Next Month Unprecedented investor demand for gold has driven ratios and spreads in the precious metals market to multi-year highs and the CME Group is hoping to capitalize on this new interest with three new futures product. Wednesday evening the futures exchanged announced that, pending regulatory approval, it will launch gold/silver ratio future contracts, gold/platinum spread futures and platinum/palladium spread futures. It is expected that these three new contracts will start trading Oct. 24. "The introduction of these ratio and spread futures contracts respond directly to customer demand for new tools to more effectively manage the price relationships of our precious metals futures contracts, which are often used to manage portfolio risk," said Miguel Vias, CME Group Head of Precious Metals. "These three new futures contracts will eliminate a great deal of complexity involved in price ratio and spread trading of precious metals and provide a broader subset of market participants the tools to offset macroeconomic risk." The CME said that the gold/silver ratio futures will be 500 index points and reference the rate between Comex gold and silver future prices for each day. The gold/platinum futures will trade in 100 troy ounces and reference the price difference between gold and NYMEX plantium future prices. The platinum/palladium will also trade in 100 troy ounces and reference the price difference between platinum and NYMEX palladium future prices for that day. According to Kitco.com, the gold/silver ratio was last at 70. While the ratio is down about 13 points from its recent highs it is still holding at its highest level in more than 5 years. Analysts have been bullish on silver because of the ratio has spent most of the year trading well above historical averages, which is around 50. Neils Christensen