October concluded with a sharp drop in gold and silver prices, marked by a significant decline during the holiday season. The fall was observed not only on the Multi Commodity Exchange (MCX) but also in the domestic market, making the purchase of gold and silver jewelry more affordable.
Specifically, the price of silver dropped to 40,000 rupees per kilogram. Analysis shows a substantial decrease in the value of silver throughout October.
To assess the plunge in silver prices, one should look at the prices on MCX. According to trading data, on the last working day of September, September 30th, the price for 1 kg of silver was 2,23,706 rupees, and by Friday, October 30th, it had fallen to 1,78,900 rupees. Thus, over the month, silver became cheaper by 44,806 rupees per kilogram.
Following this significant decrease, the cost of silver fell even lower than its historical high. At the end of January of this year, silver reached a record high of 4,20,048 rupees. Comparison with current prices demonstrates a serious collapse, as it has become cheaper by 2,41,148 rupees per kilogram. In the last week, silver decreased by 16,819 rupees per kilogram, falling from 1,95,719 rupees.
The price reduction did not occur only on MCX; a sharp decline was also seen in the domestic market. According to the updated prices for gold and silver on the Indian Bullion Jewelers Association (IBJA.Com) website, on September 30th, the price of silver in Delhi jewelry stores was 2,20,435 rupees per kilogram, whereas on October 30th, it was 1,81,344 rupees. This means that in the domestic market, silver became cheaper by 39,091 rupees per kilogram over one month.
After silver, we examine the fall in gold prices. This precious yellow metal followed the example of silver. On MCX, the price of gold decreased from the close on September 30th, which was 1,49,036 rupees, to 1,38,419 rupees by October 30th. This corresponds to a decrease of 10,617 rupees per 10 grams. Over the last five trading days, the price of 10 grams of pure gold decreased by 3,605 rupees, falling from 1,42,024 rupees.
The fall in gold prices on the exchange was accompanied by a collapse in domestic market prices. According to IBJA, on the last working day of September in Delhi, the price of 24-carat gold for 10 grams was recorded at 1,47,888 rupees, while on Friday it was 1,40,054 rupees. Calculation shows that gold became cheaper by 7,834 rupees per 10 grams. It is important to note that when purchasing jewelry in the domestic market, customers must pay 3% GST on gold, as well as pay for the making charge.