What is a COMEX exchange and how it works?


Those who have already experienced the purchase and sale of precious metals, probably came across the abbreviation COMEX. Let us tell you today in our Golden Way blog about what this organization is and how it works.

First of all, about the location of this entity. It is headquartered in New York City. And now COMEX is a branch of the New York futures exchange, NYMEX. As for the name, COMEX is an abbreviation of two English words: "commodity" and "exchange". In other words, it is the Commodity Exchange. Being a division of the New York Stock Exchange, COMEX specializes in trading operations with metals. And its area of interest includes not only precious metals (gold, silver and platinum), but also non-ferrous metals, such as copper.

Why is COMEX known to all traders involved in options and futures related to metals? Well, because it is actually the largest exchange where the most promising, most expensive deals are made in this sphere, as well as in oil and oil products trading. In short, this is where the big money is made.

What contracts are made on COMEX?

In contrast to exchanges that do everything ranging from crypto options to gold trading, the latter makes up the lion's share of COMEX transactions. In addition, silver, copper and aluminum account for the other half of all trades.

COMEX operating modes.

There are two work formats at COMEX. Physically, the exchange facilities are located in New York City's famous Manhattan (in the World Financial Center facility). Here, trading is done according to EDT on a standard business day. But on the online marketplaces, presented on the Globex platform, trading can be done 6 days a week, 23 hours a day. 

What is the average cost of a contract at COMEX?

We consider, of course, contracts for gold, because for Golden Way this is the most relevant information. Since the COMEX is officially part of the CME business group, their information is the most up-to-date for COMEX. And according to it, the average contract price for gold on the exchange (both physical and online) is $1,500. At the same time, the daily trading volume is almost half a million dollars!

How was COMEX founded?

Generally, COMEX was the result of a merger of four exchanges in New York: raw silk trading, rubber, metals itself and a private exchange. At the same time, the existence of this market deserves respect itself as it has existed since 1933. And the exchange joined NYMEX in the 1980s. 

Why is COMEX so important?

Of course, the precious metals exchange is important on its own, especially if you trade on it. But COMEX's impact is more than that. Why is it significant?

  • COMEX carries out the lion's share of transactions both in real metal sales and futures sales.
  • COMEX, along with the London Stock Exchange, sets the quality standards for commodities and therefore for gold. 
  • At COMEX you can find the most relevant standard contracts for the sale of gold.

All this makes the COMEX exchange a leader in the entire gold market in the world. At Golden Way, we will teach you the ins and outs of trading on the New York Stock Exchange and help you sell gold at the most profitable contracts.