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Silver में क्यों और केसे Invest करना चाहिए ?

Learn2Trade Series: Episode 49

Mr. Vivek Bajaj will discuss Silver, one of the precious metals, in this 49th episode of Learn2Trade. One of the top few commodities that traders prefer is silver. He will explore the complexities of silver commodity trading in this session, providing an in-depth discussion of its industrial applications, historical significance, and prospective trading and investment prospects.

In this video, he began by defining this precious metal—Silver—and going over the different contract sizes it has on the MCX. He then explained variables influencing silver commodity prices. He also talked about the connection between silver and equity stocks. Finally, he conducted research on the historical silver futures prices and investment options for ETFs. Watch the entire video to learn about silver trading from A to Z. To access the Silver Trading PPT presented in the video, click: https://bit.ly/3FrRVw6.

What You Will Learn

The major focus of this session is on silver, a metal with dual value as a precious and industrial commodity. Vivek highlights the importance of silver as an asset for traders and its use in a number of industries, such as solar energy, electronics, water purification, and more. Because of its twofold use, silver is a desirable choice for new traders because it can be used for more than just ornamentation.

After that, Vivek discusses silver from a historical viewpoint, emphasizing its uniform pricing before 1973, when the dollar was fixed. He discusses key events that influenced the fluctuations in the price of silver, including the Hunt brothers' manipulation in 1978–1979, for example. Due to this manipulation, there was a significant price gain followed by a steep drop, or what Vivek humorously refers to as the "Burj Khalifa pattern"—a surge followed by a severe decline.

Another significant increase in silver prices occurred in 2011, fueled by a larger bull run in precious metals despite global economic concerns. However, a later decline in prices due to a rising currency made this increase unsustainable. The current situation may be understood in light of Vivek's historical analysis, which suggests that silver may be in an accumulation period that might lead to a future bull run.

In response to Annapurna’s question on how rising commodity costs affect stock prices, Vivek offers an analytical analysis. He clarifies that whereas basic metals and equity generally have a link, precious metals like gold and silver may have distinct relationships. Crucially, he mentions that the effects might not be felt right away and instead develop gradually as opposed to abruptly and in synchrony.

For traders eyeing a potential silver bull run and looking to trade in silver, Mr. Bajaj offers practical guidance. He recommends using a silver trading strategy based on moving average and MCX futures to build positions. If one is looking to invest for the long term, Vivek suggests looking at exchange-traded funds (ETFs) that track silver prices. These investment options give exposure to the possible gains in precious metals in addition to acting as a hedge against inflation.

To summarize, the 49th Learn2Trade session by Vivek Bajaj is an extensive compilation of knowledge that includes historical background, useful trading guidance, and an in-depth understanding of the interplay between the equities and precious metals markets. His ability to simplify complicated ideas and his captivating presenting style make this session a valuable resource for both new and seasoned traders and investors.

Learn Commodity Trading with our Commodity Markets Made Easy: Commodity Trading Course, Enroll Today!

Frequently Asked Questions (FAQs)

Q1. What is silver commodity trading?

Purchasing and selling standardised contracts for silver on commodity exchanges is known as silver commodity trading. Without actually owning the metal, traders can profit from price changes. Gaining an understanding of supply-demand dynamics and market dynamics is essential for profitable commodities trading in silver.

Q2. What is silver options trading and how do they work?

Silver options trading involves the buying or selling of silver contracts at predetermined prices within specified timeframes. These options offer traders flexibility and risk management capabilities. To engage in silver options trading effectively, it's crucial to understand how these contracts work, including factors such as option pricing and market conditions.

Q3. What is the process for trading in silver on the MCX (Multi Commodity Exchange)?

To trade in silver on the MCX, create an account with an MCX-registered broker, deposit funds, and then use the trading interface to execute buy or sell orders. Make sure you understand the MCX's trading regulations and hours.

About Mr. Vivek Bajaj

Vivek bajaj image

The passion for data, analytics and technology is what makes Vivek Bajaj a financial market survivor. The journey as a market participant started in 2002 when the first trade was executed in the options contract of ITC. Life was simpler and easier during that time. Since then technology and Big data have taken over totally. As an early adapter to the complex tools, Kredent was formed to capitalise on the opportunities. He is co-founder of StockEdge and is committed to bring simplicity in the complex world of market data. He is a Chartered Accountant, Company Secretary and an MBA from IIM Indore. He is a part of various committees of exchanges and regulator and he has been an active contributor in the evolution of Indian Derivatives Market.

Learn2Trade Series: Episode 49

Mr. Vivek Bajaj will discuss Silver, one of the precious metals, in this 49th episode of Learn2Trade. One of the top few commodities that traders prefer is silver. He will explore the complexities of silver commodity trading in this session, providing an in-depth discussion of its industrial applications, historical significance, and prospective trading and investment prospects.

In this video, he began by defining this precious metal—Silver—and going over the different contract sizes it has on the MCX. He then explained variables influencing silver commodity prices. He also talked about the connection between silver and equity stocks. Finally, he conducted research on the historical silver futures prices and investment options for ETFs. Watch the entire video to learn about silver trading from A to Z. To access the Silver Trading PPT presented in the video, click: https://bit.ly/3FrRVw6.

What You Will Learn

The major focus of this session is on silver, a metal with dual value as a precious and industrial commodity. Vivek highlights the importance of silver as an asset for traders and its use in a number of industries, such as solar energy, electronics, water purification, and more. Because of its twofold use, silver is a desirable choice for new traders because it can be used for more than just ornamentation.

After that, Vivek discusses silver from a historical viewpoint, emphasizing its uniform pricing before 1973, when the dollar was fixed. He discusses key events that influenced the fluctuations in the price of silver, including the Hunt brothers' manipulation in 1978–1979, for example. Due to this manipulation, there was a significant price gain followed by a steep drop, or what Vivek humorously refers to as the "Burj Khalifa pattern"—a surge followed by a severe decline.

Another significant increase in silver prices occurred in 2011, fueled by a larger bull run in precious metals despite global economic concerns. However, a later decline in prices due to a rising currency made this increase unsustainable. The current situation may be understood in light of Vivek's historical analysis, which suggests that silver may be in an accumulation period that might lead to a future bull run.

In response to Annapurna’s question on how rising commodity costs affect stock prices, Vivek offers an analytical analysis. He clarifies that whereas basic metals and equity generally have a link, precious metals like gold and silver may have distinct relationships. Crucially, he mentions that the effects might not be felt right away and instead develop gradually as opposed to abruptly and in synchrony.

For traders eyeing a potential silver bull run and looking to trade in silver, Mr. Bajaj offers practical guidance. He recommends using a silver trading strategy based on moving average and MCX futures to build positions. If one is looking to invest for the long term, Vivek suggests looking at exchange-traded funds (ETFs) that track silver prices. These investment options give exposure to the possible gains in precious metals in addition to acting as a hedge against inflation.

To summarize, the 49th Learn2Trade session by Vivek Bajaj is an extensive compilation of knowledge that includes historical background, useful trading guidance, and an in-depth understanding of the interplay between the equities and precious metals markets. His ability to simplify complicated ideas and his captivating presenting style make this session a valuable resource for both new and seasoned traders and investors.

Learn Commodity Trading with our Commodity Markets Made Easy: Commodity Trading Course, Enroll Today!

Frequently Asked Questions (FAQs)

Q1. What is silver commodity trading?

Purchasing and selling standardised contracts for silver on commodity exchanges is known as silver commodity trading. Without actually owning the metal, traders can profit from price changes. Gaining an understanding of supply-demand dynamics and market dynamics is essential for profitable commodities trading in silver.

Q2. What is silver options trading and how do they work?

Silver options trading involves the buying or selling of silver contracts at predetermined prices within specified timeframes. These options offer traders flexibility and risk management capabilities. To engage in silver options trading effectively, it's crucial to understand how these contracts work, including factors such as option pricing and market conditions.

Q3. What is the process for trading in silver on the MCX (Multi Commodity Exchange)?

To trade in silver on the MCX, create an account with an MCX-registered broker, deposit funds, and then use the trading interface to execute buy or sell orders. Make sure you understand the MCX's trading regulations and hours.

About Mr. Vivek Bajaj

Vivek bajaj image

The passion for data, analytics and technology is what makes Vivek Bajaj a financial market survivor. The journey as a market participant started in 2002 when the first trade was executed in the options contract of ITC. Life was simpler and easier during that time. Since then technology and Big data have taken over totally. As an early adapter to the complex tools, Kredent was formed to capitalise on the opportunities. He is co-founder of StockEdge and is committed to bring simplicity in the complex world of market data. He is a Chartered Accountant, Company Secretary and an MBA from IIM Indore. He is a part of various committees of exchanges and regulator and he has been an active contributor in the evolution of Indian Derivatives Market.

Other series by Elearnmarkets

Through this series, watch Vivek Bajaj simplify investing and key components required to build a habit of investing and unleash the power of compounding.

All Episodes

Other series by Elearnmarkets

Watch Mr. Vivek Bajaj introduce the basic concepts of trading and discuss the various stock market indicators.