Heavy fall in silver prices before Dhanteras-Diwali, price of 1 kg silver remains this much in 10 big cities

Just before the holy festival of Dhanteras and Diwali, a big relief news has emerged from the bullion market for the buyers and investors of precious metals. This has become a great shopping opportunity for common consumers who are planning to buy silver coins, utensils and Lakshmi-Ganesh idols during the festive season. Due to the recent correction in the domestic and global markets, a significant decline has been recorded in the prices of silver. After touching record highs in the last few weeks, silver prices have fallen to the range of Rs 1.78 lakh to Rs 1.84 lakh per kg in many major cities, due to which a huge surge in festive demand is expected.

According to commodity market experts and bullion experts, global factors are mainly responsible for this latest softening in silver prices. Due to the strength of the US dollar index and fluctuations in bond yields at the international level, speculators and large institutional investors have booked huge profits. Additionally, both gold and silver precious metals are under pressure in the global markets ahead of the US Federal Reserve’s upcoming policy statements regarding interest rates. At the local level, even on MCX, the prices in the retail markets have fallen sharply due to selling being dominant in the deals.

There is a slight difference in the rates of silver in different states of the country depending on the local tax, octroi and VAT and transportation charges. According to the bullion market, the average prices of 1 kg and 10 grams of silver in 10 major metros of the country have been recorded as follows:

(Note: The rates given above are preliminary bullion reference rates; making charges and 3% GST are payable separately on retail purchases of jewellery, utensils or coins).

Buying silver on the auspicious occasion of Dhanteras is considered extremely auspicious, but buyers should take some important precautions while taking advantage of this market decline. First of all, when buying silver coins or jewellery, check for the BIS hallmarking mark, which guarantees purity (like 999 fine silver or 925 sterling silver). Also, do not forget to get a valid bill from the jeweler which clearly mentions the net weight of silver, metal rate, making charges and GST. If you are buying silver only for investment purposes, then instead of jewellery, silver coins, bars or digital silver/silver ETFs prove to be better options, as they do not have to suffer the loss of making charge deduction.