Silver Price: Following a period of continuous decline, gold and silver prices have shown some upward movement in recent days. However, on Tuesday, the second trading day of the week, they are once again experiencing a drop. Specifically, the price of silver on the Multi Commodity Exchange (MCX) decreased by over Rs 5500 per kilogram at the start of trading (Silver Price Fall), while gold also saw a decrease of Rs 2000 per 10 grams. Both precious metals have significantly decreased from their peak values. The futures price of silver has dropped by Rs 1.63 lakh.
Let’s first discuss the recent fluctuations in silver prices, including the crash, rise, and subsequent fall. On January 29, silver prices surged dramatically, surpassing the historic mark of Rs 4 lakh for the first time and reaching a lifetime high of Rs 4,20,048. However, after hitting this peak, silver began to decline the very next day, although it did show some recovery in the past few days.
In the commodity market, silver prices plummeted right after the market opened. On Monday, it closed at Rs 2,62,620 per kg on MCX, but on Tuesday, it opened lower at Rs 2,56,864. This means that the price of 1 kg of silver, set to expire on March 5th, dropped by Rs 5,756 in one go. Overall, it has now decreased by Rs 1,63,184 from its highest point.
Now, let’s turn our attention to the decline in gold prices. After silver, the yellow metal also experienced a significant drop. On Monday, gold traded robustly on the MCX, closing at Rs 1,58,066 per 10 grams, but fell to Rs 1,56,001 at the opening on Tuesday. As a result, the price for 10 grams of 24-karat gold, expiring on April 2, has decreased by Rs 2,065.
The biggest reason for the rise in silver prices is the weakening of the US dollar. When the dollar weakens, precious metals like silver and gold become cheaper for international buyers, increasing demand. Furthermore, the market is anticipating that the US central bank, the Federal Reserve, may cut interest rates. In a low-interest rate environment, non-interest-bearing investments like silver become more attractive.
Will silver exceed $100?
Experts suggest that if demand stays steady, supply shortages will continue, and if US economic indicators are weak, silver might reach or even exceed $100 per ounce. On the other hand, if US employment or inflation figures are better than anticipated, profit-taking could happen in the market, leading to a sharp decline in prices. This indicates that silver will likely face significant volatility.
What should Indian investors do?
If you already own silver, consider gradually taking profits.
For those making new investments, it’s advisable not to invest a large sum all at once, but rather to invest in smaller amounts over time.
Don’t depend solely on silver; mitigate risk by also investing in gold or other precious metals.
Stay informed about US employment statistics, inflation data, and central bank actions.
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Sweta Mitra
Working in the media for last 7 years. The journey started in the year 2018. For the past few years, my working experience has been in Bengali media. Currently working at Timesbull.com. Here I write like Business, National, and Utility News. My favorite hobbies are listening to music, traveling, food,...
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