Silver Delivery Hits All-Time High On MCX

On Tuesday, the Multi-Commodity Exchange of India (MCX) said in a statement that has seen an all-time high delivery of nearly 140 tonnes for contracts expiring in August/September.

A total of 139.96 tonnes of silver has been delivered via Silver (30 kg) September contract along with Silver Mini (5 kg) and Silver Micro (1 kg) August contracts on MCX, the exchange said in a statement.

For Silver (30 Kg) September contract, 127.50 tonnes of silver has been delivered, which has created a record of a 12-year high for delivery in a single contract.

As for the Silver Mini (5 kg) and Micro contracts (1 kg), which were recently converted into compulsory delivery contracts, delivery of 8.4 tonnes and 4.0 tonnes, valued at Rs 54.78 crore and Rs 26.41 crore, respectively was made.

The daily turnover value for bullion futures on MCX had touched a seven-year high of Rs 50,226 crore on 28 July 2020, the exchange said. In August 2020, silver contracts grossed a turnover of Rs 17,574 crore.

"Notwithstanding the prevailing volatility in silver spot markets, the record delivery witnessed in our silver contracts shows the faith reposed by buyers and sellers alike in MCX as the domestic price benchmark and its robust risk management system," said MCX's MD and CEO, P S Reddy.

"It also reflects acceptance of our newly introduced deliverable micro and mini Silver contracts with 1 kg bar as base delivery unit as they have already seen 22.58 tonnes of delivery in the first four cycles," he added.