Factors influencing/Impacting MCX Silver Micro
- 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 changes
- 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.