Silver

Contract Specification^*

Overview

Silver is a brilliant grey-white metal that is soft and malleable. The mining of silver began some 5000 years ago, with the first mine being in Anatolia (modern-day Turkey). The principal sources of silver are the ores of silver, silver-nickel, lead, and lead-zinc obtained from Peru, Bolivia, Mexico, China, Australia, Chile, Poland, and Serbia. Peru, Bolivia, and Mexico have been mining silver since 1546, and are still major world producers. Just over half of the mined silver comes from Mexico, Peru, China, and Australia, the four largest producing countries. Primary mines produce about one-third of the world silver, while around two-thirds come as a by-product of gold, copper, lead, and zinc mining. The top three silver-producing mines are Cannington (Australia), Fresnillo (Mexico), and San Cristobal (Bolivia). In Central Asia, Tajikistan is known to have some of the largest silver deposits in the world.
Silver has innumerable applications in art, science, industry and beyond. At the highest level, though, demand for silver breaks down into three important categories: silver in industry, investment, and silver jewellery and décor. Together, these three areas represent more than 95% of the annual silver demand. With unique properties, including its strength, malleability, and ductility; its electrical and thermal conductivity; its sensitivity to and high reflectance of light; and the ability to endure extreme temperature; it is an element without substitution. Commercial-grade fine silver is at least 99.9% pure, and purities greater than 99.999% are available.

Factors Influencing the Market

Economic events such as India’s industrial growth, the global financial crisis, recession, and inflation affect prices.
Geopolitical events involving governments or economic paradigms and armed conflict can cause major changes.
Commodity-specific events, such as the construction of new production facilities, introduction of new processes, unexpected mine or plant closures, and industry restructuring, too affect the market.

^* Disclaimer: The users are also advised to refer to latest circular issued by the Exchange.

CIRCULARS

Commencement of Futures Trading in MCX iCOMDEX Base Metal Index (MCX METLDEX®) October 2024 Contract Jul 12, 2024

Guidelines in pursuance of amendment to SEBI KYC (Know Your client) Registration Agency (KRA) Regulations, 2011 Jul 11, 2024

Review of validation of KYC records by KRAs under Risk Management Framework Jul 8, 2024

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Testimonials

MCX is useful to all bullion importers and jewellers in hedging their price risk volatility.

Mayank Khemka - Khemka Group of Companies

MCX provides a good platform for hedging , ample liquidity , real time price discovery , benchmark for physical markets in India.

Satish Bansal - MD overseas

Hedging on commodity derivatives traded on national commodity exchanges like MCX has provided us an efficient price risk management / hedging mechanism as for various bullion players. MCX has provided an efficient price risk management platform against price volatility and bring stability in the worksheets of market participants like us.

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Price discovery ; enables a bullion trader to hedge bullion imports right from 100 grams to 50 Kgs ; enables to hedge the movement in customs duty.

Kishore Zaveri /Yash Zaveri - Zaveri and Company