Silver (Chemical symbol-Ag) is a brilliant grey-white metal that is soft and malleable.Silver is unique amongst metals due to the fact that it can be classified as both a precious metal and an industrial metal.Today, silver is sought as a valuable and practical industrial commodity and as an investment.Silver is an important element of the global monetary reserves.Silver is an effective portfolio diversifier.
Major Characteristics:
- Silver has unique properties such as its strength, malleability, ductility, electrical and thermal conductivity, sensitivity, high reflectance of light, and reactivity
- The main source of silver is in lead ore, although it can also be found associated with copper, zinc and gold and produced as a by-product of base metal mining activities
- Silver is unique amongst metals due to the fact that it can be classified as both a precious metal and an industrial metal.
- Silver is an important element of global monetary reserves.
- It is an effective portfolio diversifier.
- Silverware achieved an increase of 4.6%, owing to stock-related gains in India.
- Demand for coins and medals surged yet higher from 2008, rising by 20.7% to reach a new record high of 78.7 Moz (2,447 t) in 2009 on the back of strong investment demand.
- In 2009, implied net investment soared to 136.9 Moz (4,258 t), buoyed by safe haven concerns, which led to strong inflows into both ETFs and physical investment.
- Net government sales fell by just over one half to 13.7 Moz (426t) in 2009, primarily driven by lowest stock sales from Russia, coupled with the continued absence of any disposal from China and India.
- Silver is predominantly traded on the London Bullion Market Association (LBMA) and COMEX in New York
- LBMA, as the global hub of over-the-counter (OTC) trading in silver, is its main physical market. Comex is a futures and options exchange, where most fund activity is focused.
- Silver is invariably quoted in the US dollars per troy ounce.
- India's silver demand averages 2500 tonnes per year, whereas the country's production was around 206.95 tonnes in 2010.
- Nearly 60% of India's silver demand comes from farmers and rural India, who store their savings in silver bangles and coins
- Economic events such as national industrial growth, global financial crisis, recession, and inflation affect metal prices.
- Commodity-specific events such as the construction of new production facilities or processes, unexpected mine or plant closures, or industry restructuring, all affect metal prices.
- Geopolitical events involving governments or economic paradigms and armed conflict can cause major changes.
- Silver demand is underpinned by the demand from jewellery and silverware, industrial applications, and overall industrial growth
- Governments set trade policy (implementation or suspension of taxes, penalties, and quotas) that affect supply by regulating (restricting or encouraging) material flow.
Related Links:
- MCX live Rate
- MCX Trading with Pivot Levels
- For MCX Intraday Calculator
- MCX Live Charts
MCX Trading Holidays 2013
No comments:
Post a Comment