Silver is a precious white metal known for its softness, malleability, and resistance to oxidation. Its excellent conductivity makes it a key material in various sectors, including automobiles and green tech. In trading, the standard lot size for silver contracts is 5 kg, which is ideal for strategic traders.
Introduction
Silver is a versatile, soft, and malleable grey-white metal that has been mined for over 5,000 years, with its first extraction in Anatolia (modern-day Turkey). Today, silver is primarily sourced from countries like Mexico, Peru, China, and Australia, which together contribute to over half of the global production.
Silver mining occurs both as a primary operation and as a by-product of gold, copper, and zinc mining. Its unique properties, including excellent electrical and thermal conductivity, make it indispensable across various industries, from electronics to jewellery. In 2023, Mexico led global silver production, contributing 6,400 metric tons.
The demand for silver spans industrial applications, investment, and jewellery, accounting for over 95% of annual consumption. This makes silver an essential asset in global markets.
Factors that Impact the Silver M (Mini) Price
Here are some key factors that impact silver mini market prices:
- Demand and Supply: Silver prices are heavily influenced by market forces of demand and supply. Increased demand or decreased availability drives prices higher, whereas lower demand or an abundant supply typically leads to reduced silver prices.
- Import Duties: Import duties significantly influence silver prices. Higher duties increase the overall cost of silver, raising its price for consumers. Conversely, lower duties reduce the final cost, making silver more affordable.
- Gold Prices: Historically, silver prices tend to follow gold’s price movements. When gold prices increase, silver usually sees a corresponding rise, and when gold prices drop, silver also tends to decline.
- Short Positioning: A few large investors holding short silver contracts can artificially drive up silver prices. When these short positions are closed, increased demand can create upward pressure on the market price.
- Mining: Silver mining is a resource-intensive process. A decline in silver mining output or rising production costs due to depleted mines can reduce supply, leading to an increase in silver prices.
- Oil Prices: Silver mining and transportation are energy-intensive processes. Rising oil prices increase production and transportation costs, which can raise the overall price of silver.
Things to Consider Before Trading in Silver M (Mini)
Before diving into silver mini trading, it's essential to consider several key factors to ensure informed decision-making:
- Market Volatility: Silver Mini prices are highly sensitive to fluctuations in global demand, geopolitical events, and currency exchange rates. Understanding the dynamics of these factors is crucial for forecasting price movements and making well-informed trading decisions.
- Regulatory Environment: Government policies, including trade tariffs, environmental rules, and financial subsidies, play a crucial role in silver mini-trading. Staying updated on existing and potential regulations is essential for anticipating shifts in market conditions.
- Economic Indicators: It is critical to monitor key economic metrics like global GDP growth, industrial output, and construction levels. These indicators often predict silver mini demand, and changes in these factors can indicate price shifts.
- Investor Sentiment and Speculation: Silver Mini prices are often influenced by investor behaviour and speculative activity in the commodity markets. Understanding market psychology and the effects of speculation is key to managing risk and optimising trade timing.
Silver M (Mini) Expiry Date Calendar 2024
Contract launch calendar for Silver Mini futures for the year 2024
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Contract Launch Month
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Contract Expiry Month
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March 2024
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February 2025
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May 2024
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April 2025
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July 2024
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June 2025
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September 2024
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August 2025
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October 2024
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November 2025
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Here’s the Options Contract Launch Calendar for the year 2024:
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Options Contract Launch Month
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Options Contract Expiry Month
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Corresponding Futures Contract Expiry Month
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March 2024
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February 2025
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February 2025
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May 2024
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April 2025
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April 2025
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July 2024
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June 2025
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June 2025
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September 2024
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August 2025
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August 2025
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December 2024
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November 2025
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November 2025
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How to Trade in Silver M (Mini) via Angel One?
Here's how to start trading Silver Mini with Angel One:
- Open a Demat and Trading Account: Begin by opening a Demat and Trading Account with Angel One.
- Activate the Commodity Segment: After your account is set up, make sure to activate the commodity segment to start trading Silver Mini contracts along with other commodities.
- Stay Informed: Keep an eye on live Silver Mini prices, market trends, and relevant news by following exchanges like MCX (Multi Commodity Exchange) and NCDEX (National Commodity and Derivatives Exchange), which are key in India.
- Execute Your Trades: Use Angel One's trading platform to place trades according to your strategy.
- Implement Risk Management: Safeguard your trades by using tools like stop-loss orders to reduce potential losses and manage risk effectively.
