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Gold December 09, 2013 06:30:08 AM

Silver's downside limited, Accumulate the metal at every decline : Edelweiss

Paul Ploumis
ScrapMonster Author
In its latest Silver research report, Edelweiss -the leading Indian financial advisory firm predicts limited downside to Silver prices going forward

Silver's downside limited, Accumulate the metal at every decline : Edelweiss

NEW DELHI (Scrap Monster): In its latest Silver research report, Edelweiss -the leading Indian financial advisory firm predicts limited downside to Silver prices going forward. The firm advises investors to initiate staggering investments at every decline.

According to the firm, the metal is massively undervalued at this juncture. The fundamentals of the metal too are looking good. However, though the price doesn’t look bottomed out, the downside will be pretty limited from current levels. If domestic silver prices stay below Rs.45, 000 per kg, they could fall to Rs.40, 000 to Rs.42, 000 in the short term. Long term investors should accumulate the metal at every fall of Rs.1000 per kg. Edelweiss advises to allot 25% of investment at every fall of Rs.1, 000 from Rs.44, 000 to Rs.40, 000.

Year-to-date Silver prices have dropped 37%. The domestic silver prices too remained extremely volatile during the year, especially during the past three months. The prices zoomed almost 30% in a matter of just under three weeks in August. The sharp rise in silver imports into the country saw the prices cooling off in October. As per data released by Thomson Reuters GFMS, silver shipments into India touched 338 tonnes in October, surging 40% in comparison with the total imports of 241 tonnes in September.

The country imported 4,652 tonnes of silver during the initial ten-month period of the year. Going by the current rate, the total silver imports by the country should touch 5,200 to 5,400 tonnes, more than the earlier record of 5,048 tonnes imported in 2008.

Currently, Silver in India is trading at Rs.44, 015 per kg.

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