Gold and silver futures are used as hedging vehicles. These futures are used to minimize the risk of the buyer who is not able to take his position immediately in the spot market. This can be done by taking a position in the futures market. However, the futures market is not limited to just hedging.
What Is A Gold And Silver Futures Contract, Exactly? With the formation of a central grain market in the mid-nineteenth century, futures contracts were first traded. Farmers could sell their grains for immediate delivery on the spot market or sell it for a set price for future delivery date on this central grain market. A