Silver Prices Slip From Record High On Profit Booking And Revised Margin From MCX
Silver prices had hit an all-time high of $52.50 per ounce earlier in the day, as a short squeeze in London added momentum the rally
International spot Silver prices declined as much as 3.47% to $50.55 during the day so far. It had hit a record high of $53.54 earlier during the day.
In India, spot prices have slipped to Rs 1,54,440 per kg today. Anuj Gupta, director of YA Director at YA Wealth Global, attributed this slip in price to profit booking. He also cited the margins increased by MCX on future positions. There has been a revision of Gold and Silver initial margin requirement or All variants, he noted.
Gold has been moved up to 7% from 6% earlier, while silver is now at 11.5% compared to 10% earlier. This change is applicable from today, as per the notice from MCX on Oct. 12.
Silver prices had hit an all-time high of $52.50 per ounce earlier in the day, as a short squeeze in London added momentum the rally, according to Bloomberg. The record run of these metals have been fueled by the surging demand for safe-haven assets. Gold had also climbed to another record high, adding on the eighth weel of straight gains.
A jump in demand from India in recent weeks has drawn down the supply of available bars to trade in London. This comes after concerns that the metal could be hit with US tariffs had floated.
"The shortage in the physical market as Silver ETF demand increased and AMCs are buying silver against the units they offered and need to store in their vault. Demand for physical jewellry and products are is also there due to festival season," according to Anuj Gupta, director of YA Wealth Global.
The strong investor appetite for silver is reflected in the record-breaking inflow data from AMFI. Net inflows into Silver ETFs in September hit an all-time high of Rs 5,341.67 crore.
This surge pushed the total Assets Under Management of Silver ETFs to Rs 36,460.94 crore in September, significantly up from the Rs 26,292.34 crore recorded in August. The month of August saw inflows of Rs 1,759 crore.
