According to data from the London market, an average of more than 19 million ounces of gold and 170 million ounces of silver are traded every day, and the actual amount may be several times this number, because many transactions occur in the private market and do not occur. Transaction information is reported, so it is difficult for us to accurately assess the number of all gold and silver transactions in the market.
Volume data from the Shanghai Gold Exchange shows that the average daily trading volume of gold exceeds 6 million ounces, while that of silver is 140 million ounces. The stock trading of the largest gold exchange-traded fund can reach the equivalent of about 1 million ounces of gold per day. quantity. It is easy to see that the amount of precious metals traded on global markets is many times greater than the amount produced by mining and recycling activities.
In the mid-20th century, as part of the Bretton Woods system, the U.S. dollar was exchanged for gold at an official fixed rate of $35 per ounce. This exchange ended in 1971, and the price of gold has since been determined by supply and demand. Thus, the need for the development of corresponding risk management tools was born, and the New York Mercantile Exchange (COMEX) launched its gold futures contract in 1974, while the COMEX silver futures contract has been available since 1933.