Bullion Bucket in Indian Commodity Market
India has a diversified commodity market which includes metal, energy, agriculture, etc. Since the ancient period, commodity trading has gained popularity among traders. Commodity traders must come across the term “bullion”. Literally, the term “bullion” refers to a bulk quantity of precious metals, especially gold and silver. As India is the leading consumer of both of these metals, the market of bullion commodities is quite promising. SEBI is the governing authority of the Indian commodity market. Another important component of the bullion bucket is gold, you may go through our page on the gold price chart and analysis. However, today, we come with the live silver price chart and analysis along with its usage and significance in the market.
Commodity Trading Exchange in the Indian Market
Most of the investments are executed through two distinct markets, OTC (Over the Counter Market) and The Exchange Traded Market. OTC indicates the spot trading while in the exchange-based market trades takes place indirectly between two parties. In India, there are multiple national as well as regional commodity exchanges. Among them, here the four approved commodity exchanges are listed below:
- MCX or Multi Commodity Exchange
- NCDEX or National Commodity and Derivatives Exchange
- NBOT or National Board of Trade
- NMCE or National Multi Commodity Exchange (NMCE)
Silver Commodity Trading in the Indian Market
For many decades, silver belongs to the bucket of eight precious metals. Its non-corrodible nature, color, luster make the metal different and precious from others. The metal is named at Ag (as a Symbol) with the atomic number 47. Once, silver was used as a valuable exchange medium, after 1960, it was removed from the monetary circulation. Unlike Gold, Silver is basically imported to India as its domestic production is not sufficient enough. According to the yearly data for 2018, the imported quantity of silver to India is 2,889 metric tonnes. The demand of 8,667 metric tonnes is much higher than the production, for the year 2018. The insufficient production of silver could not affect the consumption of silver. Hence, India is the third-largest silver consumer in the world after the US and Japan.
Various Silver Usage
The demand for silver is increasing day by day and the reason is quite valid. Silver has multiple usages. In order to understand the various application of silver, a list is given below:
Jewelry and Silverware
Near about 68% of silver is used for jewelry-making purposes. Silver metal is quite popular because of its reflective, attractive nature. In comparison to gold, it is much cheaper in price. In India, jewelry plays a vital role. Therefore, it is expected that the demand will be increased more in the future.
For its excellent electrical conductivity usage, it is used as electronics part in many types of machinery. For example, circuit boards, switches, TV screens, telephones, microwave ovens, computer keyboards, etc. The particular metal is highly durable.
For centuries, silver has been used for antibacterial purposes. It has medicinal properties. Besides this, it is also used to purify as well as freshes water, wine, vinegar. Its non-toxic characteristic is quite significant for medicine.
Silver as an investment option has already gained so much popularity among investors. Its rare availability, unique nature increase its value to some extent. Silver acts as a profitable investment avenue in the Indian financial market. Silver is traded both in the spot market as well as in the exchange market. In the spot market, silver is traded directly between buyers and sellers. In the exchange market, silver can be traded in a different way.
Top Reasons to Invest in Silver
- High demand is one of the most significant reason. Silver’s high demand make the metal more valuable than others. Increasing demand uplift its value to a great extent.
- Works as a hedging tool. During financial Inflation, silver acts as a hedging tool.
- Rare availability. It’s rare availability push the demand in a high range.
- Use as a protector in financial deflation
Silver in the Indian Commodity Market
Traders basically do future trading on the silver commodity. Among the various national and regional exchanges, MCX (Multi Commodity Exchange) is quite popular. However, a future contract is basically an agreement between two parties on a pre-fixed date and time. A list is given below, taken from MCX:
In future contracts, both buyers and sellers have the obligation to execute the trade. Apart from the physical contract and future contract, there are intraday trading in the commodity market. If traders are capable of analyzing the market correctly. Therefore, they can earn a huge return from the trading. As you can see in the above chart that silver can be traded in these separate ways. Here, you can get a live silver price chart, silver price support and resistance, silver future daily candlestick chart, etc.
Silver Price Support And Resistance
Silver Futures Daily Chart
The live Chart will be updated automatically, you only need to refresh it often. The chart will give you accurate data on the commodity.
So, the chart above the daily candles will update automatically with silver price movements. You need to refresh the page manually.
However, each investment option carries a trading symbol with it, the trading symbol of silver is SILVERDDMMMYYYY. The silver commodity lot size is 30 kg, lot size defines the minimum quantity of trading. Based on 1 kg, silver price quote. So, Silver can be traded in the normal MCX timings. However, there are many trading strategies available for commodity trading. Among them, the open range break strategy, Pivot points, are popular.
On this page, you get every detail regarding the silver commodity along with its live share price and graph. Share price technicals, analysis process also available here. Just remember, you have to refresh the page to get an updated version of the price. With the growing demand for silver, it is expected to see a high value in the future. Investors must be aware of the ups and downs of the market so that they can properly utilize the price fluctuations.