this powerpoint explains about the fundamental analysis of silver.

1. Fundamental analysis of silver.

2. SILVER INTRODUCTION:
• Silver’s unique properties include its strength, malleability,
ductility, electrical and thermal conductivity, sensitivity,
high reflectance of light and reactivity.
• The main source of silver is leadore although it can also be
found associated with copper, zinc and gold and produced
as a by-product of base metal mining activities.
• Secondary Silver sources include coin melt, scrap recovery
and dishoarding from countries where export is restricted
.Secondary sources are price sensitive.
• Silver is measured in troy ounces. Each troy ounce contains
about 31.1034768 grams of silver, which is slightly higher
than a standard ounce which has only 28 grams.

3. PRODUCTION AND CONSUMPTION OF SILVER:

4. GLOBAL SCENARIO OF SILVER:
Silver is predominantly traded on the London
Bullion Market Association(LBMA) and COMEX
in New York.
LBMA, the global hub of over-the-counter (OTC)
trading in silver is the metal’s main physical market.
COMEX is a futures and options exchange .Where
most funds activities are focused.
Silver is invariably quoted in US Dollars per troy
ounce.

5. INDIAN SCENARIO OF SILVER
The average annual demand for silver in India is
about 2500 Metric tonnes (MT) per year .
 In 2011 ,the country’s production was around 342.13
MT.
Nearly 60% of India’s Silver demand comes from
farmers and rural India .

9. CURRENT SPOT PRICE OF SILVER:
• Spot price: It is the current price at which a
commodity, like gold or silver, can be bought
or sold. The base price for un fabricated Silver
is called the spot price of silver.
 SPOT PRICE OF SILVER:

10. HOW TO DETERMINE SILVER PRICE:
The price of Silver changes every few seconds
and many factors play a role in Silver prices.
Some of the causes for fluxes in Silver prices
include:
• Current events
• Market speculation
• Currency fluctuations
• Supply and demand
• Buying power

11. Continued…………
• The price of Silver is always moving, partly
because large entities and governments
typically have substantial buying power and
can impact Silver prices through supply and
demand. If a government makes a large Silver
purchase, the demand for that product could
affect Silver markets immediately. Supply and
demand determines prices for commodities,
and Silver is no exception.
• Silver prices have increased over the last few

12. SILVER FUTURE CONTRACTS:
Silver futures contracts are an agreement for a
buyer to purchase a fixed amount of silver from a
seller, at a fixed price, at a specific time in the
future.
 A simple example would be a buyer agreeing to
purchase 5,000 troy ounces of silver, at $20/troy
ounce, two months from present. If during those
two months, the price of silver decreases $2, the
seller would profit $10,000, as they could source
the silver on the open market for $90,000 and then
sell it via the futures contract for $100,000.

13. Factors affecting silver prices:
1.Decline of mine production.
2.Government policies.
3.Inflation and Recession.
4.Currency Fluctuation.
5.Geo political concerns.
6.Demand for jewellery from the Asian markets
especially India and China.

14. Uses and applications of silver:

15. THANK YOU