Silver is one of the most traded commodities in the world, finding use in multiple industries and applications. It is this demand for silver which has made it an ideal investment choice for smart investors, investors who see the utility and versatility of silver. COMEX is the leading market for trade in commodities, including gold and silver. Silver prices change on a regular basis, with a number of important factors affecting rates. COMEX, being the largest commodity exchange market in the world accounts for a major chunk of silver traded globally, making it extremely important in the investment world.
Current Silver Rates in COMEX
Silver rates fluctuate regularly, reflecting current trends in the market. The current price of silver on COMEX is $17.4 per ounce (as of April 28, 2016). This roughly translates to Rs 40,600 per kg. COMEX rates change multiple times in a day, and are an ideal mode of investment to those who keenly follow the market. Rates in India also reflect COMEX prices, after factoring in local taxes and duties. Silver prices have been on an upward trend recently, after having a disastrous performance in 2015.
Factors Influencing Silver Price in COMEX
Some of the major factors which affect silver rates are mentioned below.
- Demand and supply – Prices are directly impacted by the demand and supply situation at any given point. Silver, being a natural resource is available in limited quantities and anytime the demand exceeds supply prices go up and vice versa.
- International politics – Any international tension can have an impact on silver rates, for this could hit supply, indirectly affecting investors. Additionally, silver is used in multiple industries and closure of such industries due to tension will result in a fall in rates.
- Production costs – Any change in the costs of mining silver will automatically reflect on COMEX. With the cost of mining increasing steadily, one could expect silver rates to go up.
- Gold rates – Silver and gold rates on COMEX are closely related. Even a slight drop in gold rates can have a significant impact on silver, primarily due to the fact that both these commodities are viewed as hedges against inflation.
- Currency fluctuation – Silver rates are impacted by change in currency value, especially of the US dollar. A drop in dollar performance pushes silver rates up, while a strong dollar pushes prices down, following an inverse relationship.
COMEX Silver Price Trends
Silver prices have been on a roller coaster ride over the last 18 months, with prices falling drastically in 2015, before picking up from January 2016. Prices saw a steady decline from June 2015, falling to a low of Rs 35,800 per kg in August. A slight improvement was witnessed in the month, as rates breached the Rs 39,000 barrier for 1 kg. Rates remained steady around Rs 37,000 per kg till October, before hitting the Rs 40,000 mark in November. Rates fell again, dropping to under Rs 34,000 a kg in December. Rates hovered around this level till mid-January, before steadily increasing. Silver rates have increased by close to 16% since the start of 2016, with 1 kg silver currently costing around Rs 41,000.
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