September 28, 2020

silver: 12-14% risk-free return leads to Rs 800 crore silver supply on MCX



Mumbai: Lured by 14-18% annual danger free return, monetary buyers have performed a key function in report silver supply price round Rs 800 crore on commodity bourse MCX. The determine for the September four expiry, 30 kilo silver futures contract excludes Friday’s supply, which is able to take the worth even greater.

Monetary buyers noticed round 2-3% premium between bi-monthly silver futures contracts traded on MCX . The commerce consisted of shopping for the cheaper close to month contract and concurrently promoting the dearer far month contract, thereby locking in costs. That’s , take supply within the close to month expiry and tender the identical at a better value within the far month.

“This arbitrage commerce has crushed returns on most different property like financial institution FDs,” stated Amit Modak, CEO, PN Gadgil and Sons.

The arbitrage is presently accessible between December 2020 and March 2021 silver contracts. On Friday, silver December final traded at Rs 67481 a kilo whereas March LTP was Rs 69740, a 3.3% premium .

India’s provisional silver import within the first half of calendar 2020 was 1217 tonnes , 63% decrease from the corresponding interval final 12 months , stated Debajit Saha, senior analyst, Refinitiv Metals India.

The smaller quantum silver mini and silver micro supply for August was 12 tonnes.