VIEW ON SILVER

PLEASE TAKE PROPER CARE WHEN YOU TRADE IN SILVER BECAUSE HISTORY OF SILVER WAS VERY BAD.  I HEAR FROM MARKET THAT SOME TRADERS ARE STILL STAND WITH SELL OF 30000 RS. NOW, LOOK AT THE PAST, IN 2008 SILVER MADE 10 DOLLAR LOWS FROM ITS HIGH PRICE THAN WITHOUT ANY INDIACATION ITS MAKE NEW HIGH AFTER 2 YEARS 31 USD WHEN RUNNING END OF 2010.

ALL COMMODITIES PRICE DEPEND ON HOW IS SUPPLY? AND HOW IS DEMAND?

SUPPLY IS ALMOST SAME BUT DEMAND IS HIGH IN LAST TWO YEARS. SILVER ALLWAYS KEEP MIDDLEMAN AND LOWER PEOPLE IN INDIA AS A SECURE THERE LIFE BUT IT IS NOT APPLY TO OTHER COUNTRIES.

MOST OF COUNTRIES IMPORT SILVER FOR USE IN INDUSTRIAL PURPOSE. LAST SOME YEARS CHINA’S DEMAND OF SILVER IS VERY HIGH FOR INDUSTRIAL USE.

NOW, LET’S SEE WHERE USE SILVER IN INDUSTRY?

1.                  USE IN MOBILE CERCUIT MANUFACTURING.

2.                  USE IN COMPUTERS

3.                 USE IN BATTERIES. [ THE MAIN REASON IS SILVER ELEMENTS CONSUMED VERY LOW        
            POWER]

4.                   LAPTOP MANUFACTURING

NOW, LOOK IN THIS PERIOUD SILVER’S ARE PURCHASING FOR MANUFACTURING AND ITS DEMAND IS 50% FROM HIS TOTAL DEMAND SO WE CAN SAY THAT 50% SILVER ARE PURCHASING FOR JUST TRADE OR JUST INVESTMENT AND 50% SILVER USE IN INDUSTRY IN CURRENT SCENARIO. GROWTH OF SILVER DEMAND AS A INDUSTRIAL USE BETWEEN 2000 TO 2008 IS BETWEEN 17% TO 18% SO IT WILL BE HIGHER.

OK. NOW, WHAT HAPPEN IN CURRENT SITUATION?

IF ECONOMY SLOWDOWN AND DOLLAR WILL WEAK THAN ITS FIRST REACTION ON INDUSTRY SO WHAT HAPPEN THAT TIME INDUSTRY DEMAND WILL LAWER COMPARE TO CURRENT DEMAND.  SECONDLLY, 50% INVESTOR ARE HOLDING SILVER BETWEEN 18000 TO 25000 RS./KG PRICE AND THEY SHOWN THAT MARKET IS NOT MOVING AS THEY LOOKING THAN THEY ARE ALSO TAKING SOME ACTION BECAUSE SILVER IS NOT GOLD.

SO HOW CAN WE TELL ANY PREDICTIONS FOR 2011?

I AM NOT SELLER SIDE OR BUYER SIDE BUT I SHOW YOU SOME EXECT POINTS WHEN YOU TRADE IN SILVER.

IN LAST 20 MONTHS WORLD HAD ONLY ECONOMY BAD NEWS DAY BY DAY AND THIS IS CYCLE AND ALL DAY IS NOT SAME SO AFTER SOME MONTHS WHEN WORLD’S NATION ARE TAKING ACTION AGAINST THIS RUNNING PROBLEM’S AND THEY GOT  POSTIVE NEWS FROM THAT THAN WHAT HAPPEN? PLEASE THINK.

PLEASE DO NOT WAIT FOR LONG WHEN YOU GOT  PROFFIT IN ANY POSITION PLEASE BOOK PROFFIT AND AVOID TO STAND LONG. BECAUSE ALLWAYS PROFFIT KEEP IN YOUR POCKET.

SILVER FOLLOW TO GOLD ALLWAYS AND IF GOLD WILL UP THAN SURE SILVER FOLLOW IT AND TARGET FOR SILVER IN NEXT TWO YEAR WILL ABOVE 100000 RUPEES PER KG.

LOOKING FOR YOUR OPINION FOR THIS ARTICLE.

NOTE : I STILL BELIEVE THAT IN THIS HIGH INFLATION PERIOD MCK AND NCDEX IS BEST WAY TO EARN MONEY AND GIVE BETTER LIFE TO YOUR FAMILY. THIS ARTICLE FOR ONLY TAKE CARE WHEN YOU TRADE AND TRADE SAFELLY AND HOPE YOU ALL EARN PROFFIT ALLWAYS FROM THIS MARKET.