Drop in Silver and Gold Prices: Silver Bubble Bursts in Four Days, Prices Fall by 16,000 Rupees

Over the past two months, there has been a substantial decrease in the prices of gold and silver. The drop has been so significant that silver has fallen below the 200,000 rupee mark per kilogram, while gold has reached a level of 142,000 rupees per 10 grams. Consequently, discussions have arisen regarding whether the current moment is suitable for purchasing these metals.

Gold price fell by 24,000 rupees

The value of gold on the MCX exchange experienced a sharp decline. If the price was 165,600 rupees on August 24, it decreased to 142,150 rupees by October 23, representing a loss of 23,450 rupees in just two months. Furthermore, in October alone, the price of gold fell by 8,000 rupees.

Silver price fell by 54,000 rupees

Similar to gold, silver prices also experienced a significant decrease. On August 24, silver cost 251,000 rupees per kilogram on the MCX, but by October 23, the price had reduced to 196,000 rupees. Thus, over two months, silver lost 55,000 rupees. During October itself, silver dropped by 30,000 rupees.

How much have gold and silver prices fallen from record highs?

The prices of both metals have shown a significant decline relative to their historical highs. Gold, whose record high is 193,000 rupees, has fallen by 51,000 rupees from this mark. Silver, whose record high reached 420,000 rupees, is 224,000 rupees cheaper than its peak value.

Reasons for the fall in gold and silver prices?

The article raises the question of the reasons behind the decline in precious metal prices.

Is it worth buying gold now?

Those planning purchases during the holiday season are advised to buy gold and silver in installments rather than with the entire sum at once, as the probability of further price drops remains. Investors are advised to invest in gold in small portions during each dip and maintain a long-term strategy.

On the Multi Commodity Exchange (MCX), precious metal prices experienced a sharp decline on Thursday following the start of futures trading. Prices for both metals plummeted: the cost of silver fell by more than 5,000 rupees, reaching a level of 2.03 lakh rupees per kilogram, while the futures gold rate dropped to 1.44 lakh rupees per 10 grams.

The drop in silver prices accelerated on Thursday, although a decrease had been observed over the past four days. On MCX, the price of silver with a December 4 expiry fell to 2,03,798 rupees, compared to closing at 2,09,168 rupees on the previous trading day. Thus, silver lost 5,370 rupees per kilogram in a single move.

Comparing current prices to the historical high, silver on MCX had previously exceeded the 4 lakh rupee mark for the first time at the end of January, peaking at 4,20,048 rupees. Based on current prices, silver is now available 2,16,250 rupees cheaper than its maximum value.

Not only silver, but also futures prices for gold sharply decreased. On MCX, 24-carat gold with a December 4 expiry fell to 1,44,311 rupees from an opening price on Thursday. Previously, on Wednesday, it traded at 1,46,079 rupees per 10 grams, representing a decrease of 1,768 rupees per 10 grams.

The decline in gold prices has continued since the beginning of this week. On Friday, the last trading day of last week, the futures price of gold was 1,47,918 rupees per 10 grams. As of the writing of this news on Thursday, the gold rate had fallen by 3,607 rupees. Furthermore, compared to September 30, when 10 grams of gold cost 1,49,036 rupees, it is now cheaper by 4,725 rupees per 10 grams.

The trend of falling prices for gold and silver continues. Prices for precious metals, which sharply dropped on Monday, continued to decline on Tuesday.

On the Multi Commodity Exchange (MCX), the price of silver fell by more than 3300 rupees per kilogram, after which silver became cheaper than its historical high by more than 200 thousand rupees. Gold also showed a decrease in value.

The latest quotes for 20-, 22-, and 24-carat gold are being considered on both the futures and domestic markets.

Regarding the futures price of silver, the contract expiring on December 4 closed at 2,22,877 rupees on Monday after daily trading. On Tuesday, after an initial rise, the price suddenly dropped to 2,21,783 rupees, representing a fall of 3319 rupees per kilogram.

Following this drop on MCX, silver became significantly cheaper than its peak level. In January of this year, the MCX Silver Price reached 4,20,048 rupees per kilogram; comparing this with the current price shows that silver is available for 2,00,490 rupees less.

Additionally, changes were observed in gold futures prices on MCX. Although the rate of decline for this yellow metal was not as sharp as that of silver, the gold contract expiring on December 4 closed at 1,49,543 rupees on the previous business day. On Tuesday, the price fell to 1,48,550 rupees, which is a decrease of 993 rupees.

In addition to the futures market, changes also occurred in the domestic market, where precious metals also became cheaper. 24-carat gold decreased from 1,48,061 rupees on Monday to 1,47,617 rupees per 10 grams. As for silver, its price dropped from 2,20,295 rupees per kilogram to 2,19,038 rupees.

According to data updated on the Indian Bullion Jewelers Association (IBJA.Com) website, current prices for various grades of gold can be viewed. However, it should be noted that although IBJA publishes uniform prices across the country, when purchasing jewelry in a store, 3% GST and manufacturing charges must be added, which can vary in different cities, increasing the final cost of the metal.