COMEX stands for The Commodity Exchange. It’s the main market for trading futures and options on metals like gold, silver, copper, and aluminum. Back in 1994, COMEX joined forces with the New York Mercantile Exchange (NYMEX) and took over the metals trading there. Then in 2008, the CME Group bought NYMEX, which included the COMEX part.
Learn more about COMEX
The Commodity Exchange is the go-to place for trading silver and gold futures. It kicked off in 1933 when four smaller exchanges in New York—National Metal Exchange, Rubber Exchange of New York, National Raw Silk Exchange, and New York Hide Exchange—joined forces.
When the Commodity Exchange merged with the New York Mercantile Exchange (NYMEX), they formed the largest physical futures trading exchange in the world, known as COMEX.
Located in the World Financial Center in New York, it operates as part of the Chicago Mercantile Exchange (CME).
The trading activities and prices set by global traders on this exchange have a significant influence on precious metals markets worldwide. It serves as the main clearinghouse for futures in gold, silver, and copper, which can be traded in various contract sizes, including standardized, mini, and micro. Other contracts available on COMEX include aluminum, palladium, platinum, and steel.
Since the futures market mainly serves as a way to hedge against price risks, most contracts are never actually delivered. Traders usually make deals based on the understanding that the asset is there, rather than taking physical delivery. However, if someone does want to take delivery of the actual metals through COMEX, they can do so starting from the first notice day up until the contract’s final day. To take delivery, the holder of the futures contract needs to notify the clearinghouse and then COMEX about their intention to receive the physical commodity. For instance, if someone wants to take delivery of gold, they would set up a long (buy) futures position and wait for a short (seller) to send a delivery notice.
Conclusion
COMEX, part of the CME Group, is a top spot for trading futures on precious and base metals like gold, silver, and copper. It plays a key role in price discovery, hedging, and speculation, impacting global metal markets. This platform gives traders a chance to manage their risks and chase profits through commodity trading.