shanghai future exchange start trading silver

Hi guys,

Lets see if the Chinese can move the price of silver to more realistic levels ;)

http://www.commodityonline.com/news/shfe-gets-approval-for-trading-silver-etf-47723-3-47724.html

BEIJING (Commodity Online): The Shanghai Futures Exchange (SHFE) has received approval from the country's regulators to start trading in Silver ETF's. This will provide the domestic Chinese investors a new opportunity to trade the precious metal


The contract size has been decided at 15 Kgs with prices quoted in Yuan. The margin requirement for the trade has been set at 7% of the value and the minimum price movement will be 1 Yuan. The ETF prices will be allowed to fluctuate upto 5% per day.


Another difference of the new ETF is that it won't be traded in the nights, when global silver markets are at their most volatile. This might prove to be a major problem for the layman investor interested in trading silver since the price volatility of the ETF can be very great due to the shorter trading period


Meanwhile, in addition to silver investors, silver producers are also expected to benefit from SHFE's silver ETF since it would provide these producers a new instrument to hedge their production.