|
Ardent Listener
Administrator
USA
4841 Posts |
 Posted - 03/24/2009 : 18:23:05
|
You must be logged in to see this link.
Commodity Online
MUMBAI: Silver futures in India are set for trading higher in the wake of weak prices in base metals and higher prices in gold.
”Silver prices continue to be strong in India. If the current bullish trend continues, silver prices could go to Rs 23,000 level for one kilogram,” said Sandeep Krishnan, a bullion analyst in Mumbai.
On Friday, silver futures at India’s largest commodity bourse, the Multi Commodity Exchange traded at Rs 22,773 for the May 5 contract. Silver is as strong and equally hot commodity like gold in India that MCX has eight silver futures contracts. India's second leading commodity exchange National Commodity and Derivatives Exchange has six silver futures contracts.
Krishnan expects silver prices in India to go above Rs 23,000 in May. Silver has outperformed gold and benefitted from recent investment demand and analysts said gold's near-term outlook still remains bullish.
In January, MCX silver futures outperformed gold, posting an 8 percent rise, while gold futures gained only 6 percent.
Generally, gold influences silver as investors see all precious metals as one class. But the metal also takes a cue from base metals, particularly copper, as it is partly an industrial metal used in photography and electronics.
“There is good upward trend in silver happening these days,” said Amrut Deshmukh, a senior technical analyst with Way 2 Wealth Securities in Mumbai.
But India's domestic demand for silver continues to be slack, with unsold stock lying with banks and government agencies. “There is not much demand for physical silver,” said Mayank Khemka, managing director with Delhi-based Khemka International.
Technically silver is counted in precious metals category but it is more an industrial commodity. Like all metals, London Bullion Market is the global hub silver trading especially in OTC (Over-The-Counter) while the New York’s Comex Futures dominate the solver fund activity.
Globally, silver is currently about 1/50th the price of gold by mass, and approximately 70 times more valuable than copper. Silver did once trade at 1/6th to 1/12th the price of gold, prior to the Age of Discovery and the discovery of great silver deposits in the Americas, most notably the vast Comstock Lode in Virginia City, Nevada, USA. The resulting debate over cheap Free Silver to benefit the agricultural sector was among the most prolonged and difficult in that country's history and dominated public discourse during the latter decades of the nineteenth century.
India, China and the United States accounted for 70 percent of the world rise in all industrial uses, while Germany, Italy and France also posted gains. Total industrial demand reached 54 percent of total global silver fabrication demand in 2007.
|
Realcent.forumco.com disclosure. Please read.
All posts either by the members, moderators, and the administration of http://realcent.forumco.com are for your edification and amusement only. It is not the intent of realcent.forumco.com or its host to provide investment, medical, matrimonial, legal, security or tax advice and nothing posted here should be considered to be so. All rights reserved.
Think positive. |
|
Silver futures in India set to trade higher due to
Forum Locked
