Retail investor frenzy sweeps through precious metals! CME data reveals: Gold and silver trading volumes explode, investment opportunities burst forth!
2025-12-03 15:24:56
Amidst the current volatility in the precious metals market, retail investors are strongly dominating the trading landscape for gold and silver. According to the latest trading data from the Chicago Mercantile Exchange Group (CME), this continued dominance of retail demand has become the core driving force behind market activity. Last month's trading volume hit its second-highest record, reflecting not only surging investor enthusiasm for precious metals but also suggesting potential upside for gold and silver prices.
Data released Tuesday (December 2) by the Chicago Mercantile Exchange Group, a leading global derivatives trading platform, showed that trading volume last month reached its second-highest level on record.
Specifically, the average daily trading volume in November reached an astonishing 33.1 million contracts, a 10% increase compared to the same period last year. This growth was mainly due to the active participation of retail investors, who significantly improved market liquidity through more user-friendly micro-contracts.
Particularly in the metals sector, the total average daily trading volume surged by 52% year-on-year, highlighting the strong influence of retail investors in the precious metals market.
Such data is not merely a collection of numbers, but a true reflection of market sentiment, indicating that ordinary investors are increasingly favoring gold and silver as tools to hedge against inflation and geopolitical risks.
Retail investors are showing particular enthusiasm in the gold market. CME's monthly data shows that mini gold futures—which are only one-tenth the size of a standard 100-ounce contract—have seen an average daily trading volume of 476,000 contracts, a 235% increase compared to the same period last year.
This small contract design significantly lowers the barrier to entry, allowing more retail investors to participate without incurring excessive financial burdens.
The steady rise in gold prices has further stimulated this demand, as investors view it as a safe-haven asset and seek refuge in an environment of uncertainty.
Overall, this growth has not only increased market depth but also provided a solid foundation for gold prices, suggesting that more trading opportunities may emerge in the future.
Given the recent dramatic price fluctuations in silver, the silver market naturally attracted significant attention last month. Standard silver futures averaged 108,000 contracts per day, a 22% increase compared to November 2024. Meanwhile, micro silver futures—equivalent to one-fifth the size of standard 5,000-ounce futures—averaged 75,000 contracts per day, a surge of 238% compared to the same period last year.
Analysts agree that retail investor demand is the key driver of silver's recent surge.
Last month, silver futures rose 18.6% overall, marking their best monthly performance since July 2020. This surge was not accidental, but rather a result of retail investors amplifying market participation through micro-contracts, further driving up prices.
It's worth noting that most of silver's gains occurred in the last week of November, when prices surged 14.5%, breaking the all-time high of $55 per ounce for the first time. This breakthrough occurred after CME trading was suspended for 10 hours due to a technical glitch, with trading resuming during North American trading hours last Friday, further reflecting the market's fervent pursuit of silver.
Entering December, silver prices continued their parabolic upward trend. Currently, COMEX spot silver is trading around $58.63 per ounce, having earlier hit a record high of $59.65 per ounce.
Even more remarkably, silver has risen by over 100% year-to-date, a rare occurrence in the history of precious metals. While a new round of volatility may be expected at these record highs, analysts emphasize that silver's upward trend remains strongly supported, primarily due to persistently robust demand coupled with a gradual contraction in supply. This supply-demand imbalance provides long-term upward momentum for silver.
Chris Mancini, co-portfolio manager at Gabelli Funds' GOLDX division, noted in a report on Tuesday that silver remains a highly attractive value investment opportunity compared to gold. He explained that the long-term gold-to-silver price ratio is approximately 68, meaning the average price of gold divided by the price of silver is 68. Currently, this ratio is around 74, implying significant room for silver to catch up. If it reverts to its long-term average, the price of silver could rise from its current level of $58 to around $65 per ounce. This analysis, based not only on historical data but also considering current market dynamics, provides investors with a clear expected path.
In conclusion, retail investors, through micro-contracts, have dominated the surge in trading volume in the gold and silver markets, driving not only a strong price increase but also injecting new vitality into precious metals. While short-term volatility is inevitable, strong demand and tight supply are expected to continue supporting the upward trend in silver.
At 15:23 Beijing time, spot gold was trading at $4204.30 per ounce.
Record trading volumes: Retail demand drives precious metals market
Data released Tuesday (December 2) by the Chicago Mercantile Exchange Group, a leading global derivatives trading platform, showed that trading volume last month reached its second-highest level on record.
Specifically, the average daily trading volume in November reached an astonishing 33.1 million contracts, a 10% increase compared to the same period last year. This growth was mainly due to the active participation of retail investors, who significantly improved market liquidity through more user-friendly micro-contracts.
Particularly in the metals sector, the total average daily trading volume surged by 52% year-on-year, highlighting the strong influence of retail investors in the precious metals market.
Such data is not merely a collection of numbers, but a true reflection of market sentiment, indicating that ordinary investors are increasingly favoring gold and silver as tools to hedge against inflation and geopolitical risks.
Explosive growth of gold micro contracts
Retail investors are showing particular enthusiasm in the gold market. CME's monthly data shows that mini gold futures—which are only one-tenth the size of a standard 100-ounce contract—have seen an average daily trading volume of 476,000 contracts, a 235% increase compared to the same period last year.
This small contract design significantly lowers the barrier to entry, allowing more retail investors to participate without incurring excessive financial burdens.
The steady rise in gold prices has further stimulated this demand, as investors view it as a safe-haven asset and seek refuge in an environment of uncertainty.
Overall, this growth has not only increased market depth but also provided a solid foundation for gold prices, suggesting that more trading opportunities may emerge in the future.
Silver Market Dazzles: The Power of Retail Investors Behind Soaring Prices
Given the recent dramatic price fluctuations in silver, the silver market naturally attracted significant attention last month. Standard silver futures averaged 108,000 contracts per day, a 22% increase compared to November 2024. Meanwhile, micro silver futures—equivalent to one-fifth the size of standard 5,000-ounce futures—averaged 75,000 contracts per day, a surge of 238% compared to the same period last year.
Analysts agree that retail investor demand is the key driver of silver's recent surge.
Last month, silver futures rose 18.6% overall, marking their best monthly performance since July 2020. This surge was not accidental, but rather a result of retail investors amplifying market participation through micro-contracts, further driving up prices.
It's worth noting that most of silver's gains occurred in the last week of November, when prices surged 14.5%, breaking the all-time high of $55 per ounce for the first time. This breakthrough occurred after CME trading was suspended for 10 hours due to a technical glitch, with trading resuming during North American trading hours last Friday, further reflecting the market's fervent pursuit of silver.
Silver prices continue their strong performance: potential for a year-to-date increase of over 100%
Entering December, silver prices continued their parabolic upward trend. Currently, COMEX spot silver is trading around $58.63 per ounce, having earlier hit a record high of $59.65 per ounce.
Even more remarkably, silver has risen by over 100% year-to-date, a rare occurrence in the history of precious metals. While a new round of volatility may be expected at these record highs, analysts emphasize that silver's upward trend remains strongly supported, primarily due to persistently robust demand coupled with a gradual contraction in supply. This supply-demand imbalance provides long-term upward momentum for silver.
Chris Mancini, co-portfolio manager at Gabelli Funds' GOLDX division, noted in a report on Tuesday that silver remains a highly attractive value investment opportunity compared to gold. He explained that the long-term gold-to-silver price ratio is approximately 68, meaning the average price of gold divided by the price of silver is 68. Currently, this ratio is around 74, implying significant room for silver to catch up. If it reverts to its long-term average, the price of silver could rise from its current level of $58 to around $65 per ounce. This analysis, based not only on historical data but also considering current market dynamics, provides investors with a clear expected path.
In conclusion, retail investors, through micro-contracts, have dominated the surge in trading volume in the gold and silver markets, driving not only a strong price increase but also injecting new vitality into precious metals. While short-term volatility is inevitable, strong demand and tight supply are expected to continue supporting the upward trend in silver.
At 15:23 Beijing time, spot gold was trading at $4204.30 per ounce.
- Risk Warning and Disclaimer
- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
