Source
r/investing•
dopexile

How to execute a Silver futures contract?

I was looking into buying perhaps a 1,000 or 10,000-ounce silver futures contract. Instead of settling in cash like is typically done, how would I actually take physical delivery on an exchange like the COMEX?

I looked into all my brokerages and they only allow them to be settled with cash, there is no way to do physical delivery.

How would these contracts even be fulfilled? Where would the counterparty get silver from? How would one get it? Would they ship it to my house?

Posted Oct 27, 2022, 4:36 AM UTC

36
d00ns•

It's actually very difficult and the COMEX will do everything they can to not deliver. Ask on r/wallstreetsilver someone there has done it

3
dopexileOP•

Are there other exchanges that are easier? I was just throwing that one out as an example.

1
d00ns•

I'm not sure, there is also the LME. These exchanges exist to control the price of metals, not actually deliver them hahaha. If you want 10k ounces you can buy 100 100oz bars direct from miners, for example https://store.firstmajestic.com/collections/silver-ingots-and-bar

Peter Schiff sells too https://schiffgold.com/buy/silver-bars/100-oz/

1
Training_Way6391•

I think Sprott's PSLV minimum is ten 1,000 ozt bars. find their prospectus here https://sprott.com/media/1451/pslv-prospectus-en.pdf

page 8

1
hydrocyanide•

I'm not aware of a brokerage that will let you keep a deliverable contract to maturity, but the delivery is actually done by electronically transferring ownership of metal in a depository. You can then make arrangements with the exchange if you want to move the metal out.

3
enginerd03•

This. Retail traders can't physically settle. Most brokers will auto close your position if it gets close to first notice date

3
ResistFlat9916•

I suppose you take the cash from the contract, pay taxes on the profit, then buy the bullion somewhere else, thus you get a new cost basis...I wouldn't necessarily love that part

1