New physically settled silver futures aim to challenge COMEX dominance and address pricing discrepancies in global silver markets.
Singapore’s Abaxx Exchange will launch a US dollar-denominated silver futures contract this month, requiring physical bullion deposits. The move contrasts with COMEX’s paper-based model and targets Asian industrial demand, which drives most global electronics production.
The contract, named SSP Futures, mirrors Shanghai and London exchanges by mandating physical settlement, addressing long-standing concerns over artificial pricing in Western markets. Asian buyers currently pay double-digit premiums over spot prices, highlighting arbitrage opportunities between regions.
Analysts suggest the shift could benefit silver miners like Pan American Silver (PAAS) and Silvercorp Metals (SVM), as well as the Global X Silver Miners ETF (SIL), by redirecting trading volumes to more transparent platforms.