Silver prices witnessed a sharp crash on the Multi Commodity Exchange (MCX), dropping by nearly ₹5,000 per kg. Gold also followed the downward trend, marking a volatile day for precious metals.
- Silver prices on MCX crashed by ₹4,911 per kilogram in a single session.
- The metal is now trading approx ₹1.80 lakh cheaper than its all-time high.
- Gold prices declined by ₹815 per 10 grams of 24-carat gold.
The precious metals market experienced a severe downturn on Thursday. Silver prices on the Multi Commodity Exchange (MCX) crashed sharply during futures trading, opening in the red zone and continuing to slide throughout the session.
According to market data, silver for the December 4 expiry had closed at ₹2,44,213 per kg on Wednesday. However, by Thursday evening, the price plummeted to ₹2,39,302 per kg. This represents a sudden drop of ₹4,911, or approximately 1.90%, in a single trading day.
Analysis of the Historical Slump
The current price action is particularly striking when compared to the asset's peak. Earlier this year, in the final week of January, silver touched a lifetime high of ₹4,20,048 per kg on the MCX. Comparing that peak to current levels, silver has crashed by a staggering ₹1,80,746 per kilogram.
BozokMedia analysis shows that such synchronized crashes in both gold and silver often stem from strengthening US Dollar indices or a shift in global central bank policies. Since silver is both a precious metal and an industrial commodity, a dip often reflects cooling demand in the electronics and solar sectors alongside financial market volatility.
"The precipitous drop in silver suggests a broader market correction, potentially signaling a shift in investor sentiment away from safe-haven assets toward riskier equities."
Gold was not spared in this sell-off. Starting slightly lower than Wednesday's close of ₹1,53,763, the price of 24-carat gold on MCX continued to slide, eventually settling at ₹1,52,948 per 10 grams, a drop of ₹815.
| Metal | Previous Close | Current Rate (MCX) | Total Drop |
|---|---|---|---|
| Silver (1kg) | ₹2,44,213 | ₹2,39,302 | ₹4,911 |
| Gold (10g) | ₹1,53,763 | ₹1,52,948 | ₹815 |
Frequently Asked Questions
1. Why did silver prices crash so suddenly?
The crash is attributed to increased selling pressure on the MCX and fluctuations in global commodity market trends.
2. Is this a good time to buy silver?
While lower prices provide an entry point for long-term investors, it is highly recommended to consult a financial expert before investing.
