Silver is one of the most important precious metals and is widely used in photography, industries, medicine and fashion. It is highly malleable and is a great conductor of electricity which makes it a highly sought after component in the electrical industry. Silver is used in the construction of numerous alloys, high-quality musical instruments, water nuclear reactors, dental alloys and coins. For thousands of years, silver has been accumulated as an investment and a hallmark of value.
For the purpose of trade, silver is available in various types of contracts. There are four types of silver contracts available on MCX. Silver mini or Silver m is one type and is sold in 5kg lots. The Silver m rate is around INR 45495 per kg. The Silver m live price on MCX is 38718.00 on 18/10/19. In the last week, the silver m price has fluctuated about -1.19% and -8.11% over the last month.
Silver Mini Pricing Trends
Silver prices are highly fickle and depend on industrial as well as economic factors. However, the one thing that remains constant is its demand. A survey conducted recently by The Silver Institute indicates that the global demand for silver is somewhere around 1170 million ounces while the global supply is approximately 1040 million ounces. This indicates a slight deficit, and the supply has improved only marginally over the years.
Types of Contracts
As stated above, the MCX has four types of silver contracts. Let us look at the difference between these contracts to understand them better. The lot sizes for these contracts are 30 kilograms for silver, 5 kg for silver M, 1 kg for silver micro and 1 kg for silver 1000. Of these four types, the most popular contracts traded on the MCX are the Silver and Silver M. The margin requirements for Silver M is roughly 6.27%, which is quite less when compared to the big silver contract. The expiry date of the silver m contract is on the last date of the expiry month, while that of silver is on the 5th of the expiry month.
The factors that affect the prices and sale of silver are trade policies set by the government, geopolitical events and surplus demand. The trading period for silver m is Monday to Friday, from 9.00 am to 11.30 pm. Checking the silver m live price daily is impractical, and not really necessary. A more time-efficient way to go about it would be to judge the market trends based on technical analysis.