MCX achieves new record in silver delivery

July 13, 2007, Mumbai: MCX, India’s leading commodity bourse, recorded the highest-ever delivery of 57,030 kgs of silver valued at Rs 97.09 crore in its July 2007 contract. The previous high of 50,040 kgs, valued at Rs 51.67 crore, was witnessed in May 2005.

As with all MCX commodities contracts, silver contracts too are tailor-made largely for the physical commodity users so that they may plan their hedging strategy better. The popularity of the contracts on the exchange platform can be gauged by the fact that MCX is the world’s largest bourse for silver, in terms of contracts traded.

"The new record in silver underscores the efficacy and transparency of the complete trading, settlement and delivery process deployed at MCX. We are glad that the trading community is finding opportunities on the Exchange to discover better price from a nationwide market offered on the MCX platform,” said Joseph Massey, DMD, MCX.

“Since silver was trading at a six-month low – the price on December 30, 2006 was Rs 21,285 per kg — a number of investors chose to buy on the MCX because of the assurance of purity of the silver bars. The settlement rate of the July silver contract, expired on July 5, was Rs 17,024 per kg,” said Jigar Pandit, manager-commodities at Sharekhan Commodities. “Investors were also attracted by the excellent cash and carry arbitrage opportunity which assured them of 1.3% returns.”