How liquid is the silver market for large trades?
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3 Answers
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On a recent deal I moved 100,000 ounces via LBMA allocations, banks matched the block instantly so slippage stayed under a cent.
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When I had to liquidate 200,000 ounces for a client last year, I split the order between COMEX futures and a London OTC desk, keeping the impact low. The futures book handled the first half, delivering tight spreads because high-frequency firms were running quotes. The OTC desk handled the rest with responsible counterparties I had vetted, and the trades settled over a few days while I kept an eye on daily volume and refused to chase thin windows. The silver market is not as deep as gold, so if you dump a mega order in one go you will move the price, but if you work with experienced brokers, tap both futures and physical markets, and stay patient you can transact tens of millions without drama. Banks that manage physical inventories, refiners, and 24/7 electronic markets keep the bid-ask manageable for large clients, just be ready to provide documentation, commit to rollovers, and sometimes accept partial fills over a few sessions.
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When I sold 10,000 ounces to rebalance a portfolio, the COMEX order book absorbed it within minutes because hedge funds were active, pricing dipped a penny or two but snapped back, so big trades stay pretty liquid as long as you slice orders and work through established venues.
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