- Silver Rate in India
The Indian market offers to invest in commodities like Silver and gold beyond the ordinary shares, real estate, and bonds. The commodity markets are stable than the equity and mutual funds. This is a viable option regarding an investment that is safe.
Silver is an industrious as well as a precious metal. Silver in India is mainly imported rather than produced. The metal is malleable, ductile, lustrous, and also a good conductor of electricity.
The demand for Silver is rising every day in India and China. The ever-increasing gold price has shifted the investor’s attention to Silver which is also a haven. The versatile metal is mostly utilized in industrial applications.
The demand for the metal has increased at a rate greater than its production which means that the commodity only appreciates.
India’s Silver demand is mostly for jewelry and Silverware. The increasing industrial growth would result in a higher amount of application for the metal.
The Silver prices are fixed based on various factors. The buying, selling, production, and demand are the factors that affect the Silver pricing in India on a daily basis.
Multi Commodity Exchange of India is the full form of MCX. It is an autonomous body for commodity exchange in India. It offers to trade in bullion, energy and agricultural commodities apart from non-ferrous metals.
This is an exchange for commodities like the BSE is for stocks and shares. The MCX sells the products in bulk.
The price for the asset depends upon various factors and is not determined at MCX. The MCX Silver rates are set by trading activity and a bunch of different other factors.
The Factors Affecting the Silver Prices
There’re various factors that affect silver price in India. Although the rate of silver has witnessed a steady hike over the period of last 2 decades, the historical trends should not be taken as a benchmark when considering the future price volatility. Making an investment in silver as a commodity has witnessed tremendous growth in India. Investors consider various factors before investing in silver so that they can make good profits from their investments. Here are the factors that affect silver price today.
- Large Investors – As compared to the gold market, the silver market is smaller. Large traders or investors can potentially affect the silver rate. In 1997, Warren Buffet purchased 130 million troy ounces of silver at $4.50 per ounce that impacted the market prices.
- Oil Prices – Silver mining is an energy-intensive process. Today silver rate is affected by oil prices, as oil is the prime source of energy around the world. The imported silver needs a sound logistics platform, which is backed-up by the consistent supply of oil. Also, fluctuations in the oil price are responsible for the dynamic price of silver as well as of gold.
- Industrial Demand – As our country is stepping towards better industrialization, the demand for silver, especially as an industrial product, has been hiked off late. This correspondingly triggers a hike in silver rates.
- Import Duties – Since silver is imported in India, the silver price is directly linked to the application of import duty on imports. A higher import duty means higher silver rates in India.
- US Dollar Fluctuation – Silver rates are impacted by the US Dollar Index. It means that a rising US Dollar can decrease silver prices in India, while a falling Dollar indicates an increase in silver prices.
- Gold Rate – Generally, silver prices follow the upward or downward trend of gold. If there’s a rise in the demand for gold leads to an increase in its rate, then silver will follow it. Likewise, any decrease in gold rates will trigger a decrease in silver rate.
- Trade Deficit – The higher the number of imported commodities, the higher the trade deficit of a country. With the increase in the trade deficit, the government might take a step to curb the import of those commodities. The government did the same in the last a few years to tackle the gold imports.
- Inflation – Today silver price is adversely affected by inflation.Since commodities like silver and gold are most preferred choices of clients to hedge their funds during financial distress due to inflation, the prices of silver increase when inflation is high.
- Large Concentrated Short Position – At present, 90 percent of all short silver contracts are held by 3-4 of the largest silver traders. This kind of concentration, specifically of a publicly-traded product in the hands of a few people, has a significant impact on silver price in the short as well as in the long run.
The Factors Affecting the Silver Price Per 1 Gram in India Today
There are plenty of factors that affect silver rate today. These factors include the international rate of silver. In India, silver rates take cues from the latest happenings in the international markets. As you know, gold and silver rates are in tune. When the gold rate increases, the silver rate also rallies. When the silver price hikes, gold price acts in accordance. Apart from that, there are various other factors that affect the per gram silver price in India. It includes interest rate movement and inflationary trends in India.
Why is Silver in India Cheaper?
Throughout the modern history, silver has been considered cheaper as compared to gold. A majority of silver is used for industrial purposes. It’s not worth it when silver is recycled. Silver is used for the purpose of conductivity in electronic devices. The rarity of silver itself makes it a crucial element and in comparison to gold making, it’s cheaper.
The imbalance in demand and supply of silver and gold creates most price difference between the two metals. One of the primary reasons that make silver cheaper is its lesser demand across the globe. It’s important to know that silver (just like all other metals) works a function of demand and supply. The higher demand means the higher silver and vice-versa.
હાલ અત્યારે ટ્વીટર મા ક્યો મુદ્દો ટ્રેન્ડ માં છે જોવા માટે અહી ક્લિક કરો