Silver Commodity Trading
Did you know that silver has more patents than any other metal?
This is because silver is highly malleable and ductile, one of the best electrical conductors and the most reflective metal. Consequently, about 54% of the annual global silver fabrication is used for industrial applications.
However, silver is even scarcer than gold. In 2006, the above-ground supply of silver was 5 times lesser than gold. Also, about 80% of mined silver is gathered as a by-product of other metals.
The metal's sheer usefulness has resulted in large-scale silver trading the world over. Since 1990, the demand for silver is increased at a faster pace than supply. While investment demand has risen lately, industrial demand is the highest for the metal.
Silver is considered both an industrial metal and a precious metal. The sharp rally in gold for last few years has also fuelled rally in silver commodity price which has increased from near $10/oz in 2005 to almost $50/oz this year.
What makes silver commodity a wise investment?Silver is a very versatile metal. It has extensive industrial application and is used to make Jewellery and utensils.
Silver demand is on a rise in India and China.
Industrial usage is expected to rise with growing industrialization.
Higher gold price has also shifted some people towards silver.
Investment interest has increased in silver also with introduction of more products.
Why is silver trading in India recommended?India is primarily a silver-importing country, contributing very little in terms of global production. Yet, the metal is considered a symbol of auspiciousness and forms an integral part of Indian customs and traditions.
Silver is less expensive than gold and aptly known as poor man's gold. With increasing gold price, demand has shifted to silver.
India's silver demand is largely for silverware and Jewellery. However with increasing economic growth, industrial usage will rise further.
Silver is a metal with wide usage and benefits from its dual use of being an industrial metal and a precious metal.
Silver price in India has risen sharply over past few years and has a positive correlation with gold which is in a bull run for over a decade. Silver is a wise investment due to dual facets.
All these factors have contributed to increased silver trading in India, making it the perfect time for the wise investor to make a move.
How can Kotak Commodities help me invest in silver?The Kotak Commodity Gateway Account will give you access to research and trading facilities so that you may effortlessly execute silver trading in India. Access to Kotak Commodities Academy will offer resources to learn more about the commodities market and trading while our expert research reports will help you to make informed purchase and sale decisions.
You may even avail of facilities like SMS alerts and Call & Trade so you never have to miss out on important buying and selling opportunities.
At Kotak Commodities, we offer attractive brokerage rates and the best part is that our Gateway is a free trading account for life, carrying no account maintenance charges at all!
To learn more about Kotak Commodity Gateway Account, please click here.
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