For some time, we saw tremendous growth in the SilverBees ETF, but now for the last two or three days, it seems that it is time for a decline in the Silver ETF.
Let us also tell you that SilverBees ETF may fall to 78 or 77 rupees and the main reason for this will be the war waged between Israel and Iran.
Impact of war between Israel and Iran on the market
There was still a war going on between Israel and Palestine, but now Iran has also jumped into it. Iran launched a missile attack on Israel, due to which the threat of war between Israel and Iran is now looming.
If experts are to be believed, then if a war breaks out between these two, it will be a very fierce war and its impact will be seen in the market even before this war ends.
Ever since Iran attacked Israel, the global market has been continuously falling. If we talk about ATMs in India, all the ATMs are down.
Now its effect is being seen on the stock market but in the coming few days we will see its effect on the commodities market also.
SilverBees ETF has not fallen that much in a few days but is consolidating its price as it falls. So there is a possibility that Silver ETF may fall in the coming time.
Why SilverBees ETF may collapse in the coming time?
As we all know in situations like war, money comes out of the stock market and invests in the commodities market.
Now if we talk about the commodities market, mainly silver, gold, and crude oil costs more money.
But if a fierce war breaks out between Israel and Iran, then we all know that Iran plays a huge role in producing crude oil.
Now it is obvious that when there is a war, the demand for crude oil will increase a lot and its supply will decrease due to which the rates of crude oil will increase further.
So those who have invested their money in silver, it is possible that they may withdraw their money from silver and invest it in crude oil so that they can get better returns.
Now when investors withdraw their money from silver and invest in crude oil, then it is obvious that the price of silver will fall.
Whenever the price of silver decreases, it will directly impact the SilverBees ETF because the SilverBees ETF copies the price of the original silver.
How much further can Silver Bees Ape fall?
Now that we have decided that if we reduce the price of silver, the price of Silver ETF will also reduce.
But now it is worth thinking about how much the price of a SilverBees ETF can decrease.
Now at the time we are writing this article, the price of SilverBees ETF is 81.79 INR.
If it falls from here due to Israel Iran war then we estimate that the price of this ETF may fall from 78 INR to 77 INR.
Impact of Russia-Ukraine war on silver
Why are we saying that the war between Israel and Iran will affect Silver we have already seen this in a war situation.
The war between Russia and Ukraine started in February 2022. If you look at the price of silver after the start of this war, there was a huge fall in it.
If you look at the price of crude oil in February 2022, we saw a jump in it.
We all know that history has a huge impact on the stock market or commodity market and history keeps repeating in the market.
So after this analysis, we conclude that the price of SilverBees ETF can fall from 78 to 77 INR.
Conclusion
As we saw during the war between Russia and Ukraine, the price of silver had decreased and the price of crude oil had increased. We may see something similar in the war between Israel and Iran.
We cannot say with certainty that the price of Silver ETF will fall, but if we look at the history of such a situation, then we conclude that the price of SilverBees ETF may fall.