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1)About Silver 2)Commodity market 3)Silver as an investment avenue 4)Silver Trend 5)Silver in past two months 6)Gold vs. Silver

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About Silver

i) As an element ii) Characteristics iii) Demand and supply iv) Producer and Consumer v) Uses of silver

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As an element:
Symbol Atomic number Mass Density @ 293 K Melting Point Boiling Point Classification Crystal Structure Characteristics Ag 47 107.868 10.5 g/cm3 961.93 C (1235.1 K) 2212 C (2428 K) Transition Metal Face-centered Cubic soft, ductile, tarnishes

Demand and Supply..

Characteristics. Ductile , Malleable, Coinage metal. Highest thermal conductivity(pure form). Highest optical reflectivity Poor reflector of U.V. ray.

Peru Mexico China Australia Bolivia

123.9 104.7 89.1 52.6 42.6

Russia
Chile

42.2
41.8

United States
Poland

39.8
39.2

Kazakhstan

21.7

The countries that are the major consumers of silver are: China United states Canada Mexico United Kingdom France Germany Italy Japan India
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Traditional Coinage Photography Silver Jewelry Silverware and Table Settings Industrial Batteries Bearings Brazing and Soldering Catalysts Electronics Emerging Medical Applications Mirrors & Coatings Solar Energy Water Purification

Commodity Trading:

Commodity market A markets where raw or primary products are exchanged. These raw commodities are traded on regulated commoditie s exchanges, in which they are bought and sold in standardized contracts.

Like stocks, commodities are traded on exchanges where buyers and sellers can work together to either get the products they need or to make a profit from the fluctuating prices. The three national exchanges in India are: Multi Commodity Exchange (MCX) National Commodity and Derivatives Exchange (NCDEX) National Multi-Commodity Exchange (NMCE)

Future trading: Futures trading are the trading of futures contracts, which gives the holder the ability to buy underlying products for a predetermined price after a definite period of time. Arbitragers: Arbitragers work at making profits by taking advantage of discrepancy between prices of the same product across different markets.

Hedging: Method by which traders use two counterbalancing investment strategies so as to minimize any losses caused by price fluctuations. Speculation: The process of selecting investments with higher risk in order to profit from an anticipated price movement.
Dow silver ratio: It means that how much ounces of silver

required to buy one share of the Dow.

INDIA
FMC(regulates forward markets in commodities )

NCDEX(NCDEX is

regulated by Forward Market Commission (FMC) in respect of futures trading in commodities. ) MCX (83% market)

INTERNATIONAL LME NYMEX Sanghai Metal Exchange.

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Silver rank 1 in MCX in future trading. Demand is not only up, but still rising.(China used to export 100 million ounces of silver now they import 112 million ounces). Technological demand for silver is increasing.(18% rise in technological sector) Silver is closing the margin on the gold-to-silver ratio.(price of gold / price of silver).(Presently 37.77)

There is a silver shortage. Crisis: Inflation is often identified as the single biggest reason for why precious metals like gold and silver rise.

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Economy : During recession high loss in equity market, investor move towards silver and gold. Fear: Loss in investment is always a fear,fearfull investor move towards asset class. Demand : Huge industrial demand(China and India) Inflation The dollar : Massive fiscal and monitory stimulus weakens the dollar, leads to increase in price of silver.

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Increased almost 33% in last two months. Increase is due to high industrial demand and macro environmental factor(Libiya crisis)

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That gold is overvalued; That silver is undervalued; or A combination of the two Silver is not just a precious metal but also an industrial metal. Silver is its value in a time of crisis.

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