- Precious metals investors could soon have more product choices in the marketplace as the CME looks to launch new options on micro gold and silver futures.
The micro market allows investors to buy and sell gold and silver at a reduced cost. Micro futures represent one-tenth the size of a traditional futures contract. Since its launch five years ago, GLDM has seen inflows of $6 billion. So far this year, 6 tonnes of gold have flowed into the mini EFT. At the same time, GLD has seen significant outflows of 32.75 tonnes.
For a growing chorus of analysts and market participants, the digitization of physical gold could create new investment demand from a wide range of investors. A digital marketplace would allow investors to buy fractionalized physical gold through digital exchanges.