Weekly

Weekly Commodity Outlook:


HIGHLIGHTS: Physical demand for silver spikes as price drops to an 11-year low:
Silver prices have dropped to their lowest level since 2009, boosting demand for the physical metal at a rate not seen in a decade.
“The fall in the underlying gold and silver prices, coupled with the potential recession due to the sharp economic downturn the CORONAVIRUS is causing has spurred the public to buy physical precious metals at the fastest pace in 10 years.”
Sales of the one-ounce American Silver Eagle coins were at 3.1 million so far this month, as of Wednesday, compared with total sales of 650,000 in February, according to data from the Mint. Silver prices have seen sharp declines as “institutions have dumped silver for cash to pay for margin calls and other obligation, as well as hoarding cash,” said Edmund Moy, who was director of the U.S. Mint from 2006 to 2011. “Eventually, low silver prices will catch up to limited physical supply and increased physical demand,” he said. “And once the global economy begins to recover from this pandemic, silver demand from industry will recover too.” But it’s silver’s industrial aspect that makes some analysts a bit more cautious. Right now, silver futures look “ready to at least bounce in a significant way,” said Spina. However, “if there is another global market selloff, silver future could get one more historic dump to [the] $10 area.”

Tags: CommodityCommodity Outlook


Search Reports

SEARCH

Open an account

OPEN AN ACCOUNT

Reports

Daily Market Update...

Nifty opened lower and traded...

Read More

Daily Market Update...

Nifty opened on a subdued...

Read More

Daily Market Update...

Nifty opened on a subdued...

Read More

Daily Market Update...

Nifty opened higher in wake...

Read More

Daily Market Update...

Nifty witnessed selling...

Read More

Ultratech Cement Ltd. Q4...

Ultratech witnessed slowdown...

Read More

Bajaj Auto Ltd. Q4FY20...

Bajaj Auto’s Q4FY20...

Read More

NIITTECH

SHORT TERM TRADING CALL: BUY...

Read More

LT Technology Q4 FY20...

L&T Technology...

Read More

Manappuram Finance...

Manappuram Finance (MFL)...

Read More

Subscribe to newsletter

Request a call back

DISCLAIMER: This document has been prepared by Arihant Capital Markets Limited (hereinafter called as Arihant) and its subsidiaries and associated companies. This document does not constitute an offer or solicitation for the purchase and sale of any financial instrument by Arihant. This document has been prepared and issued on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst meticulous care has been taken to ensure that the facts stated are accurate and opinions given are fair and reasonable, neither the analyst nor any employee of our company is in any way is responsible for its contents and nor is its accuracy or completeness guaranteed. This document is prepared for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. All recipients of this material should before dealing and or transacting in any of the products referred to in this material make their own investigation, seek appropriate professional advice. The investments discussed in this material may not be suitable for all investors. The recipient alone shall be fully responsible/are liable for any decision taken on the basis of this material. Arihant Capital Markets Ltd (including its affiliates) or its officers, directors, personnel and employees, including persons involved in the preparation or issuance of this material may; (a) from time to time, have positions in, and buy or sell or (b) be engaged in any other transaction and earn brokerage or other compensation in the financial instruments/products discussed herein or act as advisor or lender/borrower in respect of such securities/financial instruments/products or have other potential conflict of interest with respect to any recommendation and related information and opinions.