Presented By: Group 8
Shakti Tandon (63) Siddhartha Rastogi (64) Sonali Jethi (65)
Sunil Verma(67)
Tarun Chandel (70)
Suresh Morya (68)
Tarun Tyagi (71)
Tarun Bhatia (69)
Vijay Yadav (72)
Agenda
Profile
History of World Trade Major Trade Exchange Factors Influencing the Price Cost of Production/Prices
World Production/Supply/Demand
Indias Production/Major Player/Demand
Silver
Silver (Symbol Ag) is a brilliant grey-white metal and is soft and
malleable
Silver is unique amongst metals as it can be classified both as a precious
metal and an industrial metal
Silver has unique properties including
Strength, Malleability and Ductility, Sensitivity to and high reflectance of light Ability to endure extreme temperature ranges.
These unique properties makes it exceptional amongst metals and
difficult to substitute.
The main source of silver is in lead ore, although it can also be found
associated with copper, zinc and gold and produced as a by-product of base metal mining activities.
SILVER History of World Trade
The singular product most responsible for the birth of world
trade was silver
China was the dominant buyer of silver. On the supply side, Spanish America (Mexico and Peru)
majorly contributed to the production
Official estimates indicate that Latin America alone produced
about 150,000 tons of silver between 1500 and 1800
Japan has been the primary exporter of silver to China in the
late 16th and early 17th centuries, shipping ~200 tons per year
Japanese silver exports, fell
in the second half of the 17th
century
SILVER History of World Trade
In late 16th century, Silver from Mexico and Japan entered the Ming empire in large quantity, the value of silver declined, as the metal became abundant its buying power diminished. Everything had been valued in silver and silver lost its value Europeans were intermediaries in the trade between the New World and China. Massive amounts of silver traversed the Atlantic After it had reached European soil, the Portuguese in the sixteenth century and Dutch in the seventeenth century became dominant distributors of silver by a multitude of routes into Asia Economic theory predicts that gold should have flowed out of China, where it
was undervalued relative to the rest of the world, in exchange for Japanese and Western silver, which was relatively overvalued in China compared with the rest of the world
During the middle of the 15th to 17th century silver was the key commodity distributed globally and that was exchanged for items Silk , Porcelain & Gold
from the Asian mainland
Silver Trade
Technically, Silver is counted in precious metal
category
London Bullion Market is the global hub of silver
trading especially in OTC (Over-The-Counter)
New Yorks Comex Futures is a futures and options
exchange. It is here that most fund activity is focused
Price of Silver is quoted in US dollars per Troy ounce
1 troy ounce = 31.1034768 grams
Factors That Influence Silver's Price
The price of silver is influenced by the following factors:
Silver is typically extracted from ore, usually of copper, gold and
zinc.
Copper, which accounts for 26% of all of the silver mined, is a
commodity heavily dependent on demand from the housing market
Change in the housing market can affect its demand, which can signal an indirect turn for the supply of silver, and therefore its prices
Silver represents another method that investors use for hedging
currency risk through precious metals as the dollar weakens
Factors That Influence Silver's Price
End Usage of Silver also Impacts the silver price
Demand from electronics industry, where it is used for circuits and
switches.
Demand for Solar panels
Film photography , despite the advent of digital imaging, still
represents an important application for silver
Movement in Price of Gold
Global Economic conditions
Silver Price is a careful balancing act between what consumers need and the currency market demands
Silver Cost of Production
Silver Historical Price
Silver price in Dollar since 2000. Source: [Link]
World Silver - Production
13th highest producer
Source: Silver Institutes World Silver Survey 2012 publication.
World Silver - Supply
SOURCE: World Silver Survey 2012
World Silver - Demand
SOURCE: World Silver Survey 2012
Indias Silver Production
Source: Indian Commodity Exchange
Indias Silver Reserves & Major Players
India has 10,213 tons of total
resources of silver metal out of which 6,058 tons are classified under reserves
Entire reserves are located in
state of Rajasthan (97%)
Hindustan Zinc Limited (HZL )is
the largest producer of the silver in India.
It produces silver from its
mine located in Chittorgarh
Other players are Hindustan
Coppers & Hindalco
India - Demand
India is the worlds largest importer & consumer of
Silver Indian demand for Silver is ~3,550 tonnes for FY 2012, 12% higher as compared to the previous year. Indian Silver demand is expected to grow on the back of
prospective growth in industrial segments preferred investment asset along with gold. demand for silver jewelry demand from rural consumers
India accounts for ~12.6% of total world silver demand
References
[Link]
[Link] Exploring India: Mining the oppurtunity by E&Y
The Silver Insitute
IndexMundi
