Significant drop in gold and silver prices observed on Dhanteras

In recent days, a significant decline in the prices of gold and silver has been observed. Daily drops in silver prices ranging from five to ten thousand rupees are being recorded against the backdrop of the ongoing geopolitical situation worldwide. Usually, during such moments, the prices of precious metals like gold and silver demonstrate growth; however, an opposite trend is observed in this case.

Silver is losing value daily, and gold is following suit. Silver, which reached a record 4.20 lakh rupees per kilogram this year, has decreased by 2.40 lakh rupees over just ten months, reaching the mark of 1.80 lakh rupees per kilogram. This raises a natural question about the reasons for such a fall in silver prices.

On Friday, on MCX, the price of silver with December futures traded at 1,82,500 rupees per kilogram, showing a drop of 3.67 percent or 7,000 rupees by 17:08. Simultaneously, the price of gold decreased by 1.16 percent or 1,657 rupees, amounting to 1,40,900 rupees per 10 grams.

The decrease in the value of gold and silver occurred not only in India's domestic commodity market but also internationally. In the global market, gold fell by 1.26 percent and dropped below $4000 per ounce. Silver, meanwhile, decreased by approximately 4 percent, trading at a price of $50.345 per ounce.

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.

Precious metal markets, like the stock market, are experiencing a period of decline. Prices for gold and silver are showing a steady decrease. This downturn occurs against the backdrop of approaching holidays such as Karva Chauth and Dhanteras, making the purchase of gold and silver an attractive opportunity for buyers.

The most significant drop was recorded in silver. The silver futures contract on the commodity market decreased by up to 2.25 lakh rupees from its peak. In January of this year, the price of silver reached a record high of 4.20 lakh rupees per kilogram, but today it has fallen to 1.95 lakh rupees.

On Friday at 16:00, the price of silver dropped by 2.14 percent, reaching 1,95,300 rupees per kilogram. Additionally, on Thursday, futures prices for silver fell by more than 8000 rupees on MCX.

The main reason cited for the sharp decline in silver prices is the rise in crude oil prices. The price of crude oil has risen to over $114 per barrel, which has triggered a decrease in precious metal prices. There is also a decline in global demand for silver, especially in the industrial sector, leading to a rapid drop in the metal's course.

Furthermore, an expected increase in interest rates by the Federal Reserve is causing concerns about rising inflation and contributing to the decrease in silver's value.

Experts advise those considering investing in silver not to wait for further declines, but instead to acquire the metal in small portions. Although there is a possibility of further decreases in the near future, a price increase is forecasted in the long term.

Since prices have significantly decreased relative to record highs, this presents a favorable moment to purchase silver tableware or jewelry during the holidays. On the IBJA website, the price of silver was 194415 rupees per kilogram, while in Delhi, the cost of one kilogram of silver has dropped to 2.20 lakh rupees.