INTRODUCTION

“We are moving from a world in which the big eat the small to one in which the fast eat the slow”.-Klaus Schwab, 2000 (founder of the World Economic Forum) “A strong and vibrant cash market is a pre-condition for a successful and transparent futures market.” Before the North American futures market originated some 150 years ago, farmers would grow their crops and then them to market in the hope of selling their commodity of inventory. But without any indication of demand, supply often exceeded what was needed, and not purchased crops were left to rot in the streets. Conversely, when a given commodity such soybeans were out of season, the goods made from it became very expensive because the crop was no longer available, lack of supply. In the mid-19th century, grain markets were established and a central marketplace was created for farmers to bring their commodities and sell them either for immediate delivery (spot trading) or for forward delivery. The latter contracts, forwards contracts, were the fore-runners to today’s future contracts. In fact, this concept saved many farmers from the loss of crops and helped stabilize supply and prices in the offseason. Commodity Any product that can be used for commerce or an article of commerce which is traded on an authorized commodity exchange is known as commodity. The article should be movable of value, something which is bought or sold and which is produced or used as the subject or barter or sale. Indian Forward Contracts (Regulation) Act (FCRA), 1952 defines “goods” as “every kind of movable property other than actionable claims, money and securities”. In current situation, all goods and products of agricultural (including plantation), mineral and fossil origin are allowed for commodity trading recognized under the FCRA. The national commodity exchanges, recognized by the Central Government, permits commodities which include precious (gold and silver) and non-ferrous metals,

include jewellery. Most silver is produced as a by-product of copper. religious artefacts. base metals. It is the market where a wide range of products. in which they are bought and sold in standardized contracts. raw jute and jute goods. These raw commodities are traded on regulated commodities exchanges. The Mesopotamian merchants were doing just that as early as 700 BC.. Etc. as an alloy with gold and other metals. free from native silver. it has the highest electrical conductivity of any element and the highest thermal conductivity of any metal. sugar and gur. active and liquid commodity market. coffee etc. . oilseeds. ginned and un-ginned cotton. viz. lustrous transition metal. gold. malleable metal. precious metals. take speculative positions in commodities and exploit arbitrage opportunities in the market Commodity markets are markets where raw or primary products are exchanged. and in minerals such as argentite and chlorargyrite. white. and served as a medium of exchange. from the Indo European root * arg-for “white” or “shining”) and atomic number 47. and food vessels formed from the durable. energy and soft commodities like palm oil. This metal took on near mystical qualities in marking important historical milestones throughout the ages. rubber and spices. lead. Relics of these civilizations. coffee and tea. and zinc refining. It is important to develop a vibrant.cereals and pulses. This would help investors hedge their commodity risk. are traded. crude oil. The metal occurs naturally in its pure. Commodity market Commodity market is an important constituent of the financial markets of any country. SILVER Silver is a metallic chemical element with the chemical symbol Ag (Latin: argentums. Silver has attracted man’s fascination for many thousands of years. oils and oilcakes. potatoes and onions. Ancient civilizations found silver deposits plentiful on or near the earth’s surface. a soft.

e. I referred past reacts of commodity market. The price of gold and silver are highly affected by the various factors happening in and around the world. To interpret movement of future price of silver in commodity market. To learn about the Indian commodity market with reference to silver. To find out how the price of silver fluctuates in Indian Commodity market 4. 2. 6. This study limited to only one commodity. The main problem in the commodity market is the prediction of future price of commodity. To derive the relation of these commodities with other financial instruments. i. 5. The Research main intention is to know the various price drivers that determine the price of SILVER. To study different price drivers affect the silver. especially prediction of price of global metals (gold) is very difficult. The future prediction will be made on the basis of the past response of commodity market to various price drivers. NEED AND IMPORTANCE OF THE STUDY The commodity market is still new and growing in India and it has a bright scope to develop. To study the market characteristics of silver. that of an industrial raw material. Silver and this study is based on last one year performance of Silver and its related issues. on that view this research study is taken. 3. This study relates to only Indian commodity market that is MCX. silver assumed a key role in the United States monetary system when Congress based the currency on the silver dollar. SCOPE OF THE STUDY The scope of study shows the outer line or border of the research study.. OBJECTIVES OF THE STUDY 1. Silver was used for the nation’s coinage until its use was discontinued in 1965. In order to know behavior of this to commodity to that factor. and its fixed relationship to gold.In 1792. . NCDX. The dawn of the 20th century marked an important economic function for silver.

In fact. The data required for the studies were collected is primary source. and text books. . The Advanced Learner’s Dictionary of current English lays down the meaning of research as “a careful investigation or inquiry especially through search for new facts in any branch of knowledge”. DISSERTATION TITLE “ANALYSIS OF COMMODITY MARKET WITH REFERENCE TO SILVER” SOURCE OF DATA Primary data Primary data is the data gathered for a specific purpose or for a specific research report for the first time or Data observed or collected directly from firsthand experience. research is an art of scientific investigation.   The secondary data for this study was collected from the relevant journals. For the preparation of the project report several method were used to collect data and pertinent information. newspapers. Detailed questionnaire were prepared for the different departments covering as many variables as possible. The main source of secondary data for this project is internet source like MCX. NCDEX. Secondary data Data which are actually collected for some earlier research work and are applicable or usable in future research and which already have been passed through the satisfied process.RESEARCH METHODOLOGY Research in common parlance refers to a search for knowledge.

time constraint was one of the main limitations of the study.Tool used The live trading of last one year record system which is used in Edelweiss stock broking is used in this research to collect required data. by using all available data. 2. sampling technique instead of every unit of the universe. The study has adopted simple random sampling because population is known. . Simple random sampling Simple random sampling refers to that sampling technique in which each and every unit of the population has an equal opportunity of being selected in the sample. The project work was required to be completed within a short period of time. Sampling design Sampling is simply the process of learning about the population on basis of a sample. it constitutes the blueprint for the collection. I adopted the simple random sampling technique for the study. So. measurement and analysis of data. only a part of the universe is studied and conclusion is drawn on that basis for the entire universe. Limitations of the study The following are some of the limitations of the study 1. Most of the information is collected from secondary data. so researcher can’t say it 100% applicable. Empirical research This research is done by using the empirical research design to analyze the performance and to study the silver on commodity market. Thus. It is a framework for specifying the relationship among the different influencing variables. Research design Research design is the conceptual structure within which research is conducted. A sample is subset of population units. It is a plan for selecting of type of information used to answer the research question.

3. This analysis will be holding good for a limited time period i.e. PLAN OF WORK CHAPTER –I CHAPTER-II CHAPTER-III CHAPTER-IV CHAPTER-V Introduction Profile of Edelweiss Stock Broking. 4. based on present scenario and study conducted.Silver Data analysis and Interpretation Conclusions. future movement of price may or may not be similar.. calculations and figures are known only for a limited period. The samples i. Findings & Suggestions BIBLIOGRAPHY .e. Theoretical Concepts of commodity .

Sign up to vote on this title
UsefulNot useful