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Silver Presentation (1).pdf
Silver has been mined for over 5000 years and was used as currency by ancient Greek empires. It is a soft, white metal that is malleable and highly conductive. In India, silver can be traded through futures and options contracts on the MCX exchange, with contract sizes of 30kg, 5kg, and 1kg and a tick size of Rs. 1 per kg. Key factors that influence silver prices include production and supply/demand balances, industrial usage, inflation levels and the value of the U.S. dollar, as well as prices for gold and silver-producing stocks.
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Silver Presentation (1).pdf
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- 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 Stockswith base as Silver ETFs PHYSICALLY Where can one trade Silver in India? Vivek Bajaj Presents| Precious Metals: Silver
- 4. Contract Size & Expiry PRICE QUOTE QuotationBase 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 VivekBajaj Presents| Precious Metals: Silver
- 6. Factors Affecting Silver Prices PRODUCTIONSUPPLY & 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)Supplyis 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 Onesource 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 demandplays 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 & USDollar 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, goldprices 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 andSilver 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 andSilver Vivek Bajaj Presents| Precious Metals: Silver
- 16. Equity Stocks Relationship between Equity andSilver 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
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