SILVER
|
A soft white
precious univalent metallic element having the highest electrical and
thermal conductivity of any metal; occurs in argentite and in free form;
used in coins and jewelry and tableware and photography coins made of
silver
Uses of silver
Silver's unique properties include its strength, malleability,
ductility, electrical and thermal conductivity, sensitivity to high
reflectance of light and despite it being classified as a precious
metal, its reactivity which is the basis for its use in catalysts and
photography.
World Markets
- London Bullion Market is the global
hub of OTC (Over-The-Counter) trading in silver.
- Comex futures in New York is where
most fund activity is focused
Indian Scenario
- Silver imports into India for
domestic consumption in 2002 was 3,400 tons down 25 % from record
4,540 tons in 2001.
- Open General License (OGL) imports
are the only significant source of supply to the Indian market.
- Non-duty paid silver for the
export sector rose sharply in 2002, up by close to 200% year-on-year
to 150 tons.
- Around 50% of India's silver
requirements last year were met through imports of Chinese silver
and other important sources of supply being UK, CIS, Australia and
Dubai.
- Indian industrial demand in 2002
is estimated at 1375 tons down by 13 % from 1,579 tons in 2001. In
spite of this fall, India is still one of the largest users of
silver in the world, ranking alongside those Industrial giants,
Japan and the United States.
- By contrast with United States and
Japan, Indian industrial offtake for fabrication in hardcore
industrial applications like electronics and brazing alloys accounts
for only 15 % and the rest being for foils for use in the decorative
covering of food, plating of jewelry and silverware and jari.
- In India silver price volatility
is also an important determinant of silver demand as it is for gold.
World Silver Supply from
Above-ground Stocks
| Million
Ounces |
| |
2001 |
2002 |
| Implied
Net Disinvestment |
-9.5 |
20.9 |
| Producer
Hedging |
18.9 |
-24.8 |
| Net
Government Sales |
87.2 |
71.3 |
| Sub-total
Bullion |
96.6 |
67.4 |
| Scrap |
182.7 |
184,9 |
| Total |
279.3 |
252.3 |
India Industrial Fabrication , 2002
| Percentage |
| Pharmacy
& Chemicals |
22.4 |
| Foil |
9 |
| Plating |
13.7 |
| Solders
& Brazing |
5.4 |
| Electrical |
13.5 |
| Photography |
0.85 |
| Jari |
17.1 |
Frequency Distribution of Silver London Fixing Volatility from 1995
till date
| Percentage
Change |
>
7% |
5
- 7 % |
3
- 5% |
<3% |
| Daily |
|
|
|
|
| Number
of times |
7 |
10 |
85 |
2086 |
| Percentage
times |
0.3 |
0.5 |
3.9 |
95.3 |
| Weekly |
|
|
|
|
| Number
of times |
9 |
15 |
50 |
363 |
| Percentage
times |
21 |
3.4 |
11.4 |
83.1 |
Biggest Price Movement since 1995
Between February 4 - 6, 1998, daily prices rocketed by 22.3%, based on
a noted US financier had accumulated nearly 130 ounces of physical
silver. Note: Post September 1999 daily silver prices have shown more
than 5% movement not once and weekly silver prices only once. |
