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12-14% risk-free return results in Rs 800 crore silver delivery on MCX

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Mumbai: Lured by 14-18% annual risk free return, economic investors have played a vital role in record silver delivery worth around Rs 800 crore on asset bourse MCX. The shape for the September 4 expiration, 30 kilo silver futures contracts contract excludes Friday’s delivery, which will take the value actually higher.

Financial investors seen around 2-3% premium concerning bi-monthly silver futures legal agreements traded on MCX . This trade consisted of buying the more affordable near month contract plus simultaneously selling the more expensive far month contract, thus locking in prices. That is certainly , take delivery in this near month expiry plus tender the same at a larger price in the a long way month.

“This arbitrage trade has beaten returns on most other assets like financial institution FDs,” said Amit Modak, CEO, PN Gadgil and Sons.

The accommodement is currently available between 12 2020 and March 2021 silver contracts. On Comes to an end, silver December last traded in at Rs 67481 some sort of kilo while March LTP was Rs 69740, some sort of 3.3% premium .

India’s provisional silver import in the first half of calendar 2020 was 1217 tonnes , 63% lower from the corresponding time period last year , said Debajit Saha, senior analyst, Refinitiv Precious metals India.

The smaller mess silver mini and silver micro delivery for Aug was 12 tonnes.

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