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.

30 comments to Hong Kong Metals Exchange Opens Silver Contract Friday!

  • JP Morgan Shorts….are gonna get: 1(800) Sha-fted !!!

  • Bobo

    Now it starts?

  • VegasRage

    Question, won’t this further exasperate the ratio of paper to physical trading. It’s already trading nearly 500:1 paper to physical? What happens when physical delivery fails? Physical would go through the roof I think, in the mean time I wouldn’t mind seeing JP Morgan and HSBC have their asses handed to them in a paper bag.

  • thecomingdepression

    According to KID Dynamite’s blog this will do nothing..

  • Nathan

    There’s an interesting piece by “The Doc” over at silverdoctors. He did some digging on the board members, to see if “Redshield” sent any emmissaries to control the ‘colonies’. Some interesting findings, but let’s hope the fact that 90% of the board is either Chinese or Indian will keep this thing honest and a truly free market price discovery mechanism. Thanks for the good work!

    http://silverdoctors.blogspot.com/2011/07/hkmex-competition-for-cartel-or-merely.html

  • debt slave

    this truely could be the big one..a super spike on the charts. and the cme wont be able to do shit about it, they are losing control. the days and hours are on a count down.

  • Dave

    Thank you…. Silver Shield. This is one of the best web sites on the web. I check it every day. Lets hope JPM is not in control of the new exchange. They are a sick organization. Silver Shield question: Will the government eventually call-in American Silver Eagles? Is it better to hold pre-1965 coins or other bullion instead. How does the FED back JPM on their short position to control silver. It seems that they have still not covered after the recent run. Will they have to cover now with the new exchange? Thanks

  • silverdoc

    Can’t and won’t answer for SS, but I’ll give you my .02:

    Dave,

    “call-in” silver eagles?
    The silver market is too small for them (government) to deal with in this matter. Investors at this point make up a small minority of the users of physical silver, while industrial usage far outweighs bullion hoarding or numismatic trading by 100’s of millions of ounces each year.
    Also, too many silver holders have guns, in my opinion, and to risk huge loss of life by civilian law enforcement or army personal to try to recover all the physical out there would be unacceptable across the board, especially when the elitist war machine can make much, much higher returns fighting an invisible terrorist movement in afghanistan and in other parts of the world.
    As far as what type of silver to hold? That depends on why you are investing in silver in the first place, and what your exit strategy is when you’ve arrived at your destination. Do you want to be holding only 100 oz bars if silver is valued at 500 FRN’s/oz ? Always better to diversify for purposes of liquidity.
    The fed and jpm ? The ESF and FED are joined at the hip, and clearly they need to suppress gold and silver to keep the dollar ponzi scheme afloat. JPM and other banksters are just tools for implementing the manipulation. If your too big to fail, you’re also too big to jail..so in the end they will just cover with their monopoly money, or just go back to uncle Ben and cry for a bigger allowance.

    thecomingdepression,
    kid dynamite was weaned in the cracks and crevasses of wall street, where all the cancerous paper puppets comingle…so his perspective was bought and paid for long ago. But he’s good to have around…”keep your friends close, and your enemies closer”.

    Nathan,
    Chinese GDP will surpass that of the US within the next five years to become world #1. And India may just become #2 in the not so distant future as well. They already are the two biggest users/investors of physical gold and silver globally, so this HKMEx could easily become the primary commodity trading platform on the planet…no more tail wagging the dog.

  • James Woroble Jr

    Off topic, but of great historical interest.

    Groundbreaking Interview With Lee Harvey Oswald’s Girlfriend Judyth Vary Baker

    In one of the longest, if not the longest interviews she has ever done, Popeye of FederalJack.com interviewed Judyth Vary Baker, the girlfriend of Lee Harvey Oswald, who revealed startling details about the assassination of JFK, suspicious cancer research, virus causing polio vaccines, and much more.

    Judyth, once a promising student searching for a cure for cancer,ended up working with Lee Harvey Oswald in New Orleans on cancer research that was possibly sinister in nature.

    The information she provides on the JFK assassination and the real history of Lee Harvey Oswald is invaluable and should be spread throughout the world.

    http://theintelhub.com/2011/07/17/groundbreaking-interview-with-lee-harvey-oswalds-girlfriend-judyth-vary-baker/

    ===

  • Dave

    Silver Doc… Thanks for your response. You also have a great web site uncovering the truth of Silver manipulation. Does anyone know the dynamics of the link between the FED and their support of the naked shorts on Silver? How does anyone win if silver doesn’t fall back enough for a profit? Is the FED someone loaning them extra money or what is the actual connection?

  • lastmanstanding

    lastman was one of the first DTOMer’s…lastman has lived his life just like the earth works…now people (in a foreign land) who have been shit on, murdered and lived in poverty have the op to buy physical…do I need to tell you how that will work out!

    The earth only works one way…if you haven’t figured it out yet you are fucked.

    You can over think whatever you want…don’t overthink the planet.

  • OSWALD

    If HSBC is currently on of the banks manipulating silver with brits and wall street, it would seem there is some collusive reason this exchange was opening. Why are they doing this is the question? I’m pretty sure this benefits the metal manipulators more than the free markets.

  • Girish

    How can you say that Hongkong will be first exchange to trade Silver in Asia?

    We are having MCX exchange to trade Gold Silver and all other commodities for last 5 years. I trade and make money on it regularly for last few years.

    Contract size is also 100 gms, 1Kgms and 30 Kgmc

    • Silver Shield

      I was unaware of that secondary exchange I am assuming it is traded in the Rupee.
      The HKMEx has the potential to become an international force tradinging these contracts in both the dollar and the remembi.

  • Girish

    We have an exchange in India called MCX for last 5 years.

    Our margin is also about 5% Contract size is 1 Kilogram and 30 Kilograms

  • Severin Slade

    I honestly don’t think this new exchange will do a whole lot for a few reasons.

    #1 Trying to find the article, but a few months back, I believe ZH pointed out that HKMEX is run by people that run in the same circles as many that run the COMEX.

    #2 Wasn’t the same thing said when HKMEX launched its gold contracts in May? Price went up slightly but hardly enough to show that COMEX no longer was able to manipulate prices.

    • Silver Shield

      I wait to see who is the power behind the scenes of the HKMEx but I’d not see any Rothschild Goldman or Blythe minions.

  • fromasia

    Silver Shield,
    I don’t really know what an “Asian” is to you, but just to let you know, on the TOCOM in Tokyo, you have been able to buy Gold & Silver contracts for quite some time and take actual delivery, too.

    • Silver Shield

      The Japanese have been dominated by the Anglo American empire for 70 years. All of their institutions are controlled by us and the TOCOM is no exception. The same games played in London and NEw York happen there.

      I wait to see if HKMEx is any different.

  • colin

    i think nothing will happen. irrelevant news , since the gold exchange opened it did nothing major to price. why would it be any differant for silver? Also in the last 24 hours, silver has had a mini smackdown. If price were to jump up on friday, i would expect short coverning now while price is still cheap. I am afraid it going to take something else to set off the fireworks. I have no idea what.

  • This from an Alaskan silver supply side miner that has been beat up so bad by the evil triangle of London/NYC/Toronto… thanks China for being a check and balance to the insanity of those that think paper dollars rule over actually have gold and silver in hand!
    My thinking on this is also available on http://www.SilverMiningClaims.com, and http://www.MiningMagazines.com... but then who am I to challenge the wisdom of the Wall Street experts who have brought our country to the brink of bankruptcy… just as power players in an “ecological” California were so smart that they gave the edge to China in the rare earths needed to build smart car engines… jobs Asia will be controlling in the future!

  • Severin Slade

    Just have to ask yourself is it in China’s best interest to push the price of silver up dramatically? Of course not. China is aggressively BTFD just like us. I’m expecting more of the same. All the HKMX does is give China and Asia access to a physical market.

    As I and another poster pointed out, the same things were being said when they launched their gold contracts in May. What happened to the price immediately after? Not much. Gold rose by $50-70 over the course of a month or so and then dropped to the $1480 range shortly after.

    I’m still expecting a major final raid that will occur once a debt deal is announced which appears imminent. We all saw what happened to PMs once Obummer came on and said “We’ve made a lot of progress.”

    Short term upside is limited. Equities, commodities, and to a lesser extent PMs, will all be smacked down over the next month which will lead to QE3.

    Keep stacking. But for all of you expecting $50 silver tomorrow, you might be waiting for a little while.

    • Silver Shield

      Like when I first talked about the HKMEx I said that is was just another death by a thousand cuts.

      The Chinese, like Sprott and us are stacking as much as we can at these lower prices knowing that one day the world will change.

      This will not be the a bomb to the market but another finger choking the dollar to its inevitable death.

  • Conax

    In the end, it won’t matter that much if the CME has influence or colludes with this new exchange. As long as they suck up the available physical, it won’t be long before the shorts take it in the shorts. There just isn’t enough in bullion form for 20 million (about 2%) Asians to all hold nice stacks.
    Come on you silly bankers, take your foot off its throat. Save yourselves while you can. Higher prices will bring more physical into the market. You can trade it and whipsaw to your hearts content. Keeping the price down, you are guaranteed to fail.
    The Celestials will buy you out.

  • Here is the link to the video regarding this article http://www.youtube.com/watch?v=3xg0099u4z8&feature=feedf . Thanks for the great interview Chris!

  • […] Original source Contribute content like this. Start here. […]

  • […] 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. READ MORE […]

  • […] Hong Kong Metals Exchange Opens Silver Contract Friday! By Silver Shield – Dont-tread-on.me 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. […]

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