The MCX Gold December futures may extend losses as the key momentum oscillators are in favour of the bears. A break and close below Rs 26,503 the lower-end of the Bollinger Band may trigger a fresh sell-off in the yellow metal.
Silver is second option as an investment in Commodity after Gold.
Silver Trading in India
Silver as Commodity is traded both in the spot and futures segment. The three major commodity exchanges in India are MCX (Multi Commodity Exchange), NCDEX (National Commodity & Derivatives Exchange) and NSEL (National Spot Exchange).
Unlike Gold, Silver is not only a precious metal – but also used extensively in the industries including electronics and medicines - owing to easy availability and lower cost compared to some of the other mining resources – including Gold.
MCX offers trading options in Silver in the following variants – Silver, Silver Mini, Silver Micro and Silver 1000. Silver contract delivers upto 30kg of Silver. You can take physical delivery of 1kg Silver bar in its physical form or electronic. Whereas, the Silver Micro contract is for just 1kg, with requires margin money of 5 per cent of the contract value, and hence is the most actively traded contract on the exchanges given the low margins. View latest Gold Quotes and Silver Quotes here.
Before investing in the commodity you have to take note that past performance is not always be indicative of future performance - you have to understand substantial risk while trading.
Silver affected by other Economic factors
Like Gold, Silver prices are also affected by Global Growth. These factors include price movement of other commodities as per global demand, the rise in Inflation, monetary policies, import duties, debt, trade deficits, demand and supply.
Gold and Silver are co-related to other commodity prices, hence we see the Gold and Silver prices rise and fall in tandem in Indian and international markets. Also, the day-to-day currency fluctuations mainly in the Rupee-Dollar segment, triggers volatility at the counter. Most Active contracts are available here.
In simplest terms Silver derive its prices depends on production numbers, as it available in open market and its margin changes on volatility in market and current face value of contract.
Other than the trading aspect - Gold and Silver has been used as money for more than 5,000 years. This white metal is most conductive. Silver is available in form like coins and jewelry. One should buy Silver from reputed jewellers with hallmark certifications. Silver Jewellery has become part of Indian culture, heritage and tradition.