This presentation is prepared by Mr.Vivek Bajaj

1. PRECIOUS
METALS:
SILVER
Vivek Bajaj
Presents
Know-It-All

2. Vivek Bajaj Presents| Precious Metals: Silver
What is Silver?
HISTORY
Ancient civilizations in Asia Minor
mined the metal over 5000 years ago.
1800 years later the Greek Empire
mined silver as a currency.
1850, silver mining started in the US
Shiny, White Metal
Soft
Reacts with hydrogen sulfide in air,
hence objects needs regular cleaning
Malleable, Pliabile and Lustrous
Good Conductor of Electricity and
Highly Reflective
Kills Bacteria
LOOK AND FEEL
BASIC
PROPERTIES

3. MCX
Futures & Options
Equity
Stocks with base as Silver
ETFs
PHYSICALLY
Where can
one trade
Silver in
India?
Vivek Bajaj Presents| Precious Metals: Silver

4. Contract
Size &
Expiry
PRICE QUOTE
Quotation Base Value - 1 Kg
LOT SIZES
30 Kg, 5Kg, 1Kg
TICK SIZE & P/L PER TICK
(30kg)
Rs 1 per kg
P/L = 1*30= Rs 30
EXPIRY
5th Day of the Contract
Expiry Month.
MARGIN REQUIREMENT
230K for 1 Lot (Approx - 30Kg)
68K for 1 Lot (Approx - 5Kg)
8K for 1 Lot (Approx - 1Kg)
DELIVERY UNITS
30 Kg, 5Kg, 1Kg
Vivek Bajaj Presents| Precious Metals: Silver

5. Uses of Silver
Vivek Bajaj Presents| Precious Metals: Silver

6. Factors Affecting
Silver Prices
PRODUCTION SUPPLY &
DEMAND
SILVER SCRAP
METAL
Vivek Bajaj Presents| Precious Metals: Silver

7. Factors Affecting
Silver Prices
INDUSTRIAL
DEMAND
INFLATION & US
DOLLAR
GOLD
PRICES
Vivek Bajaj Presents| Precious Metals: Silver

8. Production
Primary Production (Mining) and Secondary
Production (Recycling Old silver items to
silver) are the 2 ways to produce silver.
Rarely mined as a native element. Always
occurs as a by-product of mining copper, zinc,
lead and gold.
Top Producers are Mexico, Peru and China.
Vivek Bajaj Presents| Precious Metals: Silver

9. Supply & Demand
1)Supply is limited and production has been
declining recently. Mining is expensive so
higher mining costs will further reduce
production.
2)50% demand is attributed to industial
demand and remains stable.
3)Mining Strikes, discovery of new silver
deposits, changes in trader's appetite for silver
could affect prices.
Vivek Bajaj Presents| Precious Metals: Silver

10. Silver Scrap Metal
One source of scrap metal used to be
photography but with advent of digital
ohotographty, silver has little contribution.
As silver prices rise, more scrap supply comes
to the market capping the prices of the same.
another source is jewellery and silverware
when prices rise.
Vivek Bajaj Presents| Precious Metals: Silver

11. Industrial Demand
Industrial demand plays a big role in the prices of silver.
Even though the demand is stable, any shift in the
demand equilibrium will cause prices to change.
Water purification, solar and circuit boards still require
silver due to its chemical and physical properties
helping maintain the demand equilibrium.
Vivek Bajaj Presents| Precious Metals: Silver

12. Inflation & US Dollar
US Dollar and Silver have an inverse
correlation. This means that Dollar weakens,
prices of silver rises.
Traders and purchasers of silver also look at it
as a protection against the loss of
purchashing power due to inflation.
Vivek Bajaj Presents| Precious Metals: Silver
Source: DailyFX

13. Gold Prices
Historically, gold prices and silver prices have
had a positive correlation. Traders use this
information to follow the gold-silver ratio and
their price movements before placing buy or
sell orders.
Vivek Bajaj Presents| Precious Metals: Silver

14. Equity Stocks
Relationship
between Equity
and Silver
Hindustan Zinc
NON-FERROUS METAL SECTOR,
METAL INDUSTRY
Vedanta
NON-FERROUS METAL SECTOR,
METAL INDUSTRY
Vivek Bajaj Presents| Precious Metals: Silver

15. Equity Stocks
Relationship
between Equity
and Silver
Vivek Bajaj Presents| Precious Metals: Silver

16. Equity Stocks
Relationship
between Equity
and Silver
Hind Zinc is the 6th
largest silver
producer in the world.
Hind Zinc is the only
primary producer in
India.
Demand is fully
utilised by industrial,
jewellery and
silverware sectors.
Vivek Bajaj Presents| Precious Metals: Silver

17. Thank you!
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Vivek Bajaj Presents| Precious Metals: Silver