Hong Kong Metals Exchange Opens Silver Contract Friday!

This is the news that I have been waiting for and is probably the reason why silver has been so strong the past couple of days. The HKME is starting its silver contract this Friday July 22nd! This officially breaks the Anglo American monopoly on silver. This will be the first time that Asians can buy and take future delivery of silver in Asia. No longer can the CME raise margins close to 100% in 8 days. (Then refuses to lower them despite a 30%+ drop in 5 days.) The extended hours should also stop the 10 am smack down since traders can now access the HKME.

The silver shorts should be fearing the hundreds of millions of Asians that will be entering this small market. China alone has Trillions of dollars and they could drop .01% of that money into silver and explode silver beyond the control of the Anglo American Elite. The HKME contracts are also a lot smaller,only 1,000 ounces versus 5,000 ounce contracts. I am reaching out to see if I can get more information like if JP Morgue or HSBC has any ownership in this exchange. Stay tuned,but this new demand for real physical silver is something to be very happy about.

HKMEx to Launch Silver Futures Contract
New contract to take advantage of surge in global demand for silver
HONG KONG,18 July,2011 – The Hong Kong Mercantile Exchange (“HKMEx”),China’s international commodity marketplace,announces today the launch of a US-dollar silver futures contract to begin trading on 22 July,2011,following the successful introduction of its gold futures two months ago.

The new contract,launched on the back of surging global demand for silver,will trade in units of 1,000 troy ounces and be delivered in Hong Kong. Trading will last for 15 hours every day,Monday to Friday,beginning at 8am and ending at 11pm Hong Kong time,with a 30-minute pre-opening auction starting at 7:30am. Clearing and settlement of contracts will be conducted through the independent clearing house LCH.Clearnet.

Between 2008 and 2010,demand for silver rose 67% in China and 17% globally to reach 7,495 tons and 32,870 tons respectively,according to market data compiled by HKMEx. China alone,accounted for nearly 23% of the world’s silver consumption last year,reflecting its importance as a global manufacturing powerhouse.

“The new contract will enable buyers and sellers in China to trade effectively with their counterparts across the world,while at the same time,allowing investors to gain exposure to silver price movements and broaden their investment portfolio,” said HKMEx president Albert Helmig.

“We are fully aware of the vast potential of precious metals both as a hedge against inflation and as an investment diversification tool,and will continue to expand our product suite in this area,” added Mr Helmig.

HKMEx’s first product,a 32 troy ounces gold futures contract with physical delivery in Hong Kong,traded in June a total of 48,321 contracts with a daily average volume of 2,297 contracts. Trading volume has increased in the 11 trading days in July to a daily average of 3,280 contracts.

The Exchange’s current membership represents 20 of the most well established financial institutions and futures brokerages in the region and globally,including the most recently added Jinrui Futures (Hong Kong) Limited and Wing Fung Futures Limited.
Contracts for the new silver futures will be for the current calendar month,the next two consecutive months,and any months of January,March,May,July,September,and December falling within a succeeding 12-month period.

Full real-time trading statistics on the new contract will be accessible through the Bloomberg and Thomson Reuters information services by typing IXSA <Comdty>CT and 0#HKS:respectively.

http://af.reuters.com/article/metalsNews/idAFL3E7II0W920110718

SINGAPORE,July 18 (Reuters) –The Hong Kong Mercantile Exchange (HKMEx) said on Monday it will start trading a dollar-denominated silver futures contract on July 22,hoping to tap into the growing demand for the metal in China.

The silver contract will trade in lots of 1,000 troy ounces and be delivered in Hong Kong,the exchange said in a statement.

Silver demand rose 67 percent in China and 17 percent globally between 2008 and 2010,the exchange said,citing market data it has compiled.

“The new contract will enable buyers and sellers in China to trade effectively with their counterparts across the world,while at the same time,allowing investors to gain exposure to silver price movements and broaden their investment portfolio,”said HKMEx president Albert Helmig in the statement.

The exchange rolled out a dollar-denominated gold futures contract in May.

The exchange also plans to launch yuan-priced gold and silver futures to capitalise on growing investor demand for China’s strengthening currency,with further ambition for products in base metals,energy and agriculture,Helmig told Reuters earlier this month.

Spot silver traded at $39.89 an ounce by 0707 GMT,down 19 percent from a record of $49.51 hit on April 28. The metal,notorious for price volatility,surged 60 percent earlier this year to the peak before dropping 33 percent over six sessions in early May.