Last Updated : 31 December 2012 at 18:40 IST
Silver 2013: All silver lining and no clouds
Source :Commodity Online Research desk
I guess, I would suggest you to buy more silver than gold. So, if any one has already bought silver then he should keep patience and hold on to it, but if any one who has still not bought, must have possibly missed it. There is more room of silver to move higher, and mind you, silver is cheaper than gold.
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With the depreciation in Indian Rupee adding to the bash, Indian silver bugs have enjoyed 13% return in 2012 with around 30% reduction in trading volume on the MCX compared to 7% returns in the international markets.
Main reason for investments to pour into gold and silver is the continuous stability witnessed in the global bullion markets. Besides it is easy to liquidate gold and silver. Normally, the commodity melts in the month of December following speculative selling pressure and profit booking as prices are trading at yearly high levels.
Since attaining new highs at the end of 2010, gold and silver have been sold off, and the selling has been particularly intense in beginning of the year of 2011. Poor news plaguing the economy has proved to be completely bullish for the precious metal.
Gold /silver ratio
Gold to silver ratio is expected to move towards 53 compared to previous year ratio of 49 which may supports silver prices to trade higher than gold. Historically, gold prices have been 16 times greater than silver. Currently, gold prices are just near $1,660 per ounce even as silver is sitting pretty at $30 per ounce.
Gold is down 10 or 15 percent from its all-time high while silver is down 30 or 40 percent. So I guess, I would suggest you to buy more silver than gold. So, if any one has already bought silver then he should keep patience and hold on to it, but if any one who has still not bought, must have possibly missed it.
There is more room of silver to move higher and mind you silver is cheaper than gold.
Investment and store-of-value-demand for silver looks set to continue to grow at a steady rate in 2013 and this should compensate for any decline in silver industrial demand as it has done in recent years.
Major support levels for silver is at $30 an ounce and below that it could test $28 an ounce. Upside potential is likely to be seen initially towards $35 and above that $38 in coming year.
By owning silver bullion, you’re best set to capture the maximum amount of gains possible once the metal starts to soar higher once again.
Silver prices are expected to trade in the range of Rs.55000-70000. MCX Silver has major support level at Rs 55000 below the mark of Rs 57000; resistance is likely to be seen at Rs.65000 and above that Rs 68000 for year 2013.
Multiple uses for silver combined with high investment demand and supply deficit will help prices to stay higher for the year 2013.
- Indian Railways Commodity-wise freight income rises by 8.66% in April-May period Y/Y
- Copper witnessing a shift to permanently slower demand growth: Barclays
- MCX Lead bearish, Nickel negative; support 121.6 and 824
- MCX Crude Oil bullish; resistance 5830 and 5900
- MCX Silver sideways; support 43500, resistance 44200
- MCX Gold sideways to bullish; resistance 28150