Factors influencing/Impacting MCX Silver
Economic events such as national industrial growth,global financial crisis,
recession, and inflation affect metal prices.
Economic events such as national industrial growth,global financial crisis,
recession, and inflation affect metal prices.
Commodity-specific events such as the construction of new
production facilities or processes, unexpected mine or plant closures, or
industry restructuring, all affect metal prices.
Governments set trade
policy (implementation or suspension of taxes, penalties, and quotas) that
affect supply by regulating (restricting or encouraging) material flow.
Geopolitical events involving governments or economic paradigms and armed conflict can cause major change.
A faster growth in demand against supply often leads to a drop in stocks with the government and investors.
Silver demand is underpinned by the demand from jewellery and silverware, industrial applications.
In India, the real
industrial demand occupies a small share in the total industrial demand of
silver. This is in sharp contrast to most developed economies.
In India, silver demand is also determined to a large extent by its price level and volatility.
