Brief Summary
The video discusses the current silver market, highlighting a significant FOMO (Fear Of Missing Out) driven price surge. It presents three strategies to leverage this situation: selling physical silver at inflated prices and repurchasing it at lower exchange rates, selling overvalued silver ETFs and buying physical silver, and selling George Persham coins at a premium before prices potentially drop post-Diwali.
- Explains the current silver market's FOMO-driven price surge.
- Offers three strategies to capitalize on the inflated silver prices.
- Advises on potential arbitrage opportunities and future market trends.
Introduction to the Silver Market Chaos
The silver market is experiencing a period of chaos driven by FOMO, with prices surging dramatically. For example, the price of silver on the MCX (Multi Commodity Exchange) is ₹1,52,000, while jewelers are selling it for ₹1,70,000. Silver ETFs are also trading at a 10% premium. This discrepancy indicates a market frenzy where people are rushing to buy silver, fearing they will miss out on potential gains.
Strategy 1: Arbitrage with Physical Silver
If you possess physical silver, you can capitalize on the price difference by selling it at the higher jeweler price of ₹170,000 and purchasing it on the MCX for ₹1,52,000. This arbitrage opportunity allows you to profit from the price discrepancy. Continue to roll over your investment until the price difference between the physical market and the exchange normalizes, which is expected to happen eventually.
Strategy 2: Profiting from Silver ETFs
Silver ETFs are currently selling at a 10-15% premium. Selling your silver ETF holdings and buying silver on the MCX for ₹1,52,000 can be a profitable move, allowing you to capture the arbitrage opportunity. Many AMCs (Asset Management Companies) have halted new purchases of silver in ETFs due to the irrational market behavior, but selling is still an option to take advantage of the high prices.
Strategy 3: Selling George Persham Coins at a Premium
George Persham coins, often bought during Dhanteras, are currently trading at a premium. These coins, weighing 11.66 grams, are effectively priced at around ₹1,980 to ₹2,000 based on the jeweler's silver rate of ₹170,000 per kilogram. However, they are circulating at ₹2,200 to ₹2,500, even before Dhanteras. Selling these coins at a 20% premium (around ₹2,400) is advisable, as it may be difficult to sell them at this price after Diwali, when prices are expected to drop below ₹2,000. If you have a large quantity, consider arbitraging by buying silver futures.
