CME to launch cash-settled 100-ounce silver futures targeting retail investors
Unprecedented investment demand has been the key driving force in silver’s drive to record highs and the CME Group is planning to capitalize on that momentum with a new futures product.
On Tuesday, the world’s largest derivatives exchange announced that it will launch a 100-ounce silver futures contract, targeting retail traders.
"Silver is increasingly appealing to retail traders looking to diversify their exposure across a wider range of metals in the face of geopolitical uncertainty and the energy transition," said Jin Hennig, Managing Director and Global Head of Metals at CME Group. "100-Ounce Silver futures will improve access to a wider range of participants, enabling them to benefit from the liquidity and efficiencies that our futures markets provide."
Currently, investors who want to trade silver must buy either a full 5,000-ounce contract or a Mini Silver Futures contract, which is a 1,000-ounce contract.
However, there is one sharp difference with the CME’s silver product: there will be no physical delivery; contracts will be cash settled.
"With silver in high demand, we are pleased that CME Group is expanding its smaller-sized offerings," said Isaac Cahana, CEO, Plus500US. "This new contract will make it easier than ever for our global customers to capture silver opportunities in a flexible, cost-effective way."
The CME noted saw explosive growth in its smaller precious metals futures through the second half of 2025. The exchange said it was a record year for trading both Micro Gold futures (301K ADV) and Micro Silver futures (48K ADV). Clients also traded over 6 million contracts in the 1-Ounce Gold futures contract launched on January 13, 2025.
The new silver product comes as the precious metal continues to see extraordinary demand for physical bullion. Spot silver is currently trading above $86 an ounce, while March silver futures are trading around $83 an ounce.
The premium in spot indicates that investors are willing to pay more for immediate delivery than to wait three months for it.
Analysts have said that the silver supply chain remains extremely fragile, as record industrial demand in the last five years has depleted above-ground stocks. Industrial players are now competing with investment demand for physical supply.
However, because the CME’s latest product will be cash settled, investors don’t have to worry about delivery issues.
Looking ahead, analysts are expecting demand for hard assets like gold and silver to continue to grow as investors try to protect their wealth in a world faced with escalating geopolitical and economic uncertainty.
With silver prices trading near record levels, some analysts have said that there is very little to stop a run to $100 an ounce.
