Tuesday, 15 May 2012

In India MCX Silver Ready To Move Higher

MCX Silver, the well known volatile white metal has had a great performance since the beginning of the year 2012. But after March prices dipped to some extent and remained in tight range of 55000-59000 in domestic bourses. Silver often has dual properties of bullions and base metals and when base metals rise that is also supportive for the silver. More Information about silver tips today visit my site mcx-today.blogspot.com

Recently prices have taken good support at 55000 levels in MCX and the decline in greenback is also keeping the sentiments upbeat in base metals and bullions. Safe-haven assets are likely to perform well if there are more jitters around as seen in euro zone and investors also park their funds in gold and silver as safe havens. Furthermore the movement of local currency Rupee will also be vital for silver movement in domestic market.

Investing in MCX gold and silver for financial survival has become a necessity as the entire world now is undergoing financial instability. Adding to the appeal of silver to investors is the huge and growing industrial demand for silver, which means that investing in silver could be profitable for time to come.

Industrial and Investment demand of MCX Silver:

Resurging investors' interest and record estimate of industrial demand for silver is another factor to support the prices. Manufacturers are expected to use 15,415 metric tonne silver in 2012, 2.5% more than in 2011 thereby reducing the excess by 41 percent to 3,297 tonne. This is likely to be felt as the manufacturing industry is gaining momentum slowly in US. With the record high gold prices some Indian people have started using silver in jewellery and that will result in more import of silver in India.

Silver prices may witness volatile movement in 2012 on global macro economic uncertainties and possible fall in industrial demand for the commodity. Investment demand may gain especially in India where the demand usually comes from farmers and rural households who store their savings in silver bangles and coins.

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