Metals Prices | Futures Vs Cash Market Metals Follow

It is important to distinguish cash market from futures markets when looking at a particular commodity.  Many people do not realize that there is a difference between the two.  The futures market is essential to a producer’s need to hedge against the actual commodity that they hold in their warehouse.  In the paragraphs to come I will discuss the differences between cash markets and futures markets, and their advantages as well as disadvantages.