Understanding What Is COMEX: An Overview

Introduction to COMEX

COMEX is one of the world’s largest futures and commodities exchanges. It is owned by CME Group, which is the world’s largest derivatives marketplace. COMEX was founded in 1933 and is regulated by the Commodity Futures Trading Commission (CFTC). It is also a part of the Chicago Mercantile Exchange (CME). It is the largest and most liquid exchange for trading futures and commodities in the world, and it is a key part of the global financial system.

In fact, this was the first time in history that Americans had an official place to store their precious metals in a safe and secure environment! COMEX has been around ever since and has become one of the most popular ways to invest in gold or silver.

How Does COMEX Work?

COMEX is the world’s largest gold and silver exchange. Gold futures, including options, are traded on COMEX in New York and London. Silver futures are traded in PHLX, while platinum and palladium are traded on LBMA-NYMEX. The COMEX electronic platform is called Nymex.

COMEX is an acronym for the New York Commodity Exchange, which became a registered exchange in 1971. The exchange was founded by the American Bankers Association (ABA) to enable banks to trade gold and silver for other commodities like cotton, coffee, sugar and hogs.

The exchange is open 24 hours a day, five days a week and operates in more than 40 countries.

Silver or Gold on COMEX

The COMEX trades gold and silver bullion contracts on a daily basis, with each contract consisting of 100 troy ounces of fine gold or 1 kilogram of refined silver. Each contract’s price is derived from a specific benchmark price determined from a survey conducted by Thomson Reuters based on spot prices in London during normal business hours.

For more information on good delivery of gold, silver, and precious metals products, visit the CME Group website.

Due to the widespread use of these commodities in electronics and appliances, such as in the case of gold, and silver, investors may choose to participate in COMEX based on this demand.

A COMEX Deliverable Bar: What Is It?

These precious metal bars, sometimes referred to as COMEX Acceptable bars, are prepared by refiners that have been approved by COMEX and adhere to strict guidelines established by COMEX. The weight, size, and minimum purity of the bar are determined by these requirements. The Commodity Futures Trading Exchange uses a COMEX Deliverable or COMEX Acceptable bar to meet demand for precious metals, so when someone requests delivery of one of their futures, they will be issued one of these bars.