SIC is cash-settled, while SI provides for physical delivery. We explore the CME specifications and why warehouse inventories can't be directly equated with future delivery volumes.
Two Contracts for Different Purposes
CME Group announced the launch of the 100-Ounce Silver Futures (SIC) contract, with trading set to begin on February 9, 2026. The contract is settled in cash at expiry, rather than through delivery of physical silver.
This instrument differs from the traditional Silver Futures (SI) contract, which allows for physical delivery. The final settlement of the SIC contract is tied to the settlement price of the deliverable SI contract, ensuring a price link between them.
Size of one contract, not warehouse inventories. June 2026 dates describe a historical SI delivery cycle.
Both contracts are linked to the price of silver, but their terms differ: SIC is settled in cash, while SI provides for the delivery of the metal.
What the Delivery Calendar Shows
The CME calendar dated May 26, 2026 for Silver (SI) and 1000oz Silver (SIL) specifies the June delivery period from June 1 to June 30. Thus, in CME's documentation, the cash-settled SIC contract exists alongside the deliverable contracts, not as a replacement for them.
The existence of such a schedule confirms a delivery cycle, but it does not in itself guarantee that any specific delivery will be executed or that exchange inventories will be sufficient at any given time.
How the Exchange Assesses Deliverable Supply
When setting position limits, CME assesses the amount of metal available for delivery (deliverable supply). In exchange-approved depositories, two categories of silver are distinguished, as described in CME document 26-008 on page 10 of the PDF:
- Registered — metal that meets exchange requirements and has a warehouse warrant issued for it.
- Eligible — metal that also meets the requirements but does not have a warrant issued for it.
The existence of a warrant does not automatically make the underlying metal available to any buyer. In its analysis, the exchange considers the full volume of registered metal and 50% of the eligible volume, based on historical data (November 2022 – October 2025). This is a conservative estimate for calibrating position limits, not a verification of coverage for the entire current open interest.
Warehouse inventories show how much metal is stored in depositories. Open interest indicates how many futures contracts have not yet been closed. Neither of these metrics on its own reveals the volume that will be tendered for delivery in a given month. Therefore, the ratio of open interest to inventories cannot be automatically interpreted as the share of "unbacked" contracts.
What to Check Before Trading
If your goal is the ability to receive physical metal, the cash-settled SIC contract does not offer this option. For SI, the delivery specification alone is not sufficient: you must also verify whether your specific broker supports delivery and on what terms.
This is the practical difference between the two contracts. The contract size and settlement method should be verified in the instrument's specifications, while the ability to take delivery must also be confirmed in your agreement with your broker.
This material is for informational purposes only and does not constitute a personal investment recommendation.