Silver
Lot Size
Standard Lot size is 5000Oz
5000OZ = 13300 Tola
1OZ = 2.66 Tola
Tick size
0.001
Per point value
0.001 x 1000 = 1 point
5000Oz = 5000$
500Oz = 500$
100Oz = 100$
10Oz = 10$
Compensation of Enrichers
5000OZ = 120$
500OZ = 12$
100OZ = 2.4$
10OZ = 0.24$
PMEX cost
0.0113%
CGT
Filer: 5%
Non Filer: 10%
Key Fundamentals That Move Silver Prices
1. Supply & Demand
Industrial Demand (50%+ of silver use):
o Electronics, solar energy, EVs, medical tools
Jewellery & Investment Demand:
o Coins, bars, silverware
Mine Supply:
o Mexico, Peru, China are major producers
2. Economic Conditions
Weak economy / recession fears → People buy silver as a safe haven
Strong industrial growth → Higher demand for silver
3. US Dollar Index (DXY)
Silver is priced in USD globally.
Stronger dollar → Silver price goes down
Weaker dollar → Silver price goes up
4. Inflation & Interest Rates
High inflation: Silver acts as a hedge, prices may rise
High interest rates: Precious metals often fall (they don’t yield interest)
5. Gold-Silver Ratio
This ratio compares the price of gold to silver:
o High ratio (>80) → Silver is undervalued
o Low ratio (<60) → Silver may be overvalued
Traders use this to switch between gold and silver.
6. Geopolitical Tensions
War, crises, or uncertainty → People buy silver as a safe-haven asset
Full In-Depth Breakdown of Silver Price Movements
(2015–2025)
2015 – Strong Dollar Crushes Silver
Price: $16.20 → $13.80
What actually happened:
After years of quantitative easing (QE), the US economy began showing strength —
GDP growth, falling unemployment, and consumer confidence were rising.
Fed’s role:
The Fed announced its first interest rate hike in almost a decade. Higher rates
increased demand for USD-based assets (e.g., bonds), making silver less attractive.
China factor:
China, a major consumer of industrial silver, showed signs of slowing. Manufacturing
contracted, and demand for electronics declined.
Investor behaviour:
Investors shifted toward the dollar and equities. Silver, which yields no interest, lost
favour during a rising-rate environment.
2016 – Political Risk Sparks Demand
Price: $13.80 → $16.25
Global instability:
The UK’s Brexit vote in June 2016 shocked markets. Investors fled to safe-havens
(silver, gold, bonds) amid fears of EU instability.
US Elections:
The 2016 US election was highly polarizing. Global uncertainty around a potential
Trump presidency drove increased silver buying.
Investor behaviour:
Institutional funds increased silver ETF holdings as a hedge against political volatility
and currency swings.
2017 – Confidence Rises, Demand Falls
Price: $16.25 → $16.00
Economic boom:
2017 was a strong year for global growth. The US economy grew steadily, stock
markets boomed, and volatility was low.
Fed policy:
The Fed continued raising interest rates, tightening monetary policy in a “risk-on”
market.
Result:
Investors preferred equities and real estate. With no major crisis and a strengthening
USD, silver underperformed.
Industrial usage steady, but without fear, silver didn’t attract speculative or safe-
haven demand.
2018 – Trade War & Dollar Strength
Price: $16.00 → $14.60
Trade war:
The US and China began imposing tariffs on hundreds of billions in goods. This
impacted global manufacturing and tech — two areas where silver is widely used.
Dollar spike:
Safe-haven demand moved into the dollar, not silver. The USD Index (DXY) rose
sharply.
Aggressive Fed:
The Fed raised rates four times in 2018 — one of the most hawkish years in recent
history.
Investor psychology:
Fear was real, but unlike in 2008 or 2020, it translated into cash hoarding, not metal
accumulation. That’s why silver fell.
2019 – Recession Fears Revive Silver
Price: $14.60 → $17.80
Yield curve inverted:
When short-term interest rates rise above long-term ones, it signals economic stress.
This triggered recession warnings globally.
Fed pivoted:
The Fed paused rate hikes mid-year and later began cutting. This helped gold and
silver rally.
ETF demand surged:
Investors moved money into silver ETFs as a hedge against declining bond yields and
recession risks.
Industrial demand returned mildly as trade tensions eased.
2020 – Pandemic Panic = Silver Boom
Price: $17.80 → $26.40
COVID-19 hit:
Markets crashed, global demand halted, and uncertainty reached levels not seen since
the 2008 crisis.
Weak USD:
Flooding the economy with dollars weakened the currency, which makes dollar-
priced metals like silver cheaper globally.
Industrial surge:
Demand for medical devices, electronics, solar panels, and batteries (all silver-heavy
sectors) spiked post-lockdowns.
Investor behaviour:
Both retail and institutional investors poured into metals — silver ETFs saw record
inflows.
2021 – From Hype to Correction
Price: $26.40 → $23.10
Fed changes tone:
As the economy recovered, the Fed hinted at tapering asset purchases. This spooked
silver bulls.
Inflation was high, but rising bond yields made silver less attractive.
Result:
After the post-COVID run, silver corrected as institutional money flowed out and real
yields rose.
2022 – Interest Rates Dominate
Price: $23.10 → $21.40
Fed’s most aggressive year:
To fight record inflation (~9% in the US), the Fed raised rates by 425 bps in one year.
Dollar surged:
USD hit 20-year highs — terrible for commodities priced in dollars.
Recession fears slowed industrial demand.
Manufacturing declined in Europe and China.
Investor reaction:
Money fled to dollar assets and short-term treasuries. Silver dropped despite inflation
because opportunity cost rose.
2023 – Industrial Hope Balances Rates
Price: $21.40 → $23.90
Mixed year:
Inflation stayed high, but the Fed slowed its hikes.
Industrial demand picked up, especially from EVs, solar, and semiconductors.
No strong dollar effect: USD stabilized, helping silver’s international attractiveness.
Investor behaviour: Some hedged against inflation, while others waited for clearer
direction. That’s why silver moved sideways.
2024 – Supply Crunch Meets Super cycle
Price: $23.90 → $31.80
Physical silver deficit:
Global mine production couldn’t meet growing demand, especially from:
o Electric Vehicles (EVs)
o Solar panels
o 5G chips and AI data centres
Investment returns:
As silver outperformed bonds and equities, fund managers re-entered the metal.
Dollar weakness:
As US rates peaked, the dollar eased, helping silver break out.
Investor behaviour:
Strategic long positions emerged. Silver entered a commodity supercycle — a multi-
year bullish trend.
2025 (YTD) – Strategic Metal Surge Price: $31.80 → $36.50+
Silver is now a “strategic metal” — not just a commodity.
3rd straight year of supply shortage: Mines can’t keep up with green energy,
battery, and electronics demand.
Geopolitical risk is high: Ongoing war in Ukraine, rising US–China tensions over
Taiwan, and Middle East instability.
Fiat currency confidence falling: Global debt crises in countries like Argentina,
Egypt, and possibly Japan are shifting investor focus to real assets.
Investor behaviour: ETFs and sovereign wealth funds are loading silver as a hedge
against inflation, war, and dollar decline.
