Gold Silver Price Crash: After record rise, now a sharp decline is being seen in the prices of gold and silver. There was a strong selloff in gold and silver ETFs during trading on January 30, with many funds losing 10% to 24%. This has increased concern among investors.
Gold futures with April expiry on MCX fell by nearly 9% to Rs 1,68,000 per 10 grams. Surprisingly, just a day before, gold had reached an all-time high of Rs 1,93,096 per 10 grams. Such a sharp decline has raised questions on the direction of the market.
The fall in silver was even more rapid. Silver future with March expiry fell 15% to Rs 3,39,910 per kg. Whereas in May and July contracts also a weakness of 12% to 15% was recorded. It is clear that the pressure was not limited to gold only.
ETF investors have also suffered a big shock. Nippon India Gold BeES fell nearly 10%. ICICI Prudential, HDFC, Axis, UTI, DSP and Quantum Gold ETFs witnessed a decline of 10–12%. The condition of silver ETFs was worse. Axis Silver ETF fell as much as 24%, while ICICI Prudential, Kotak and SBI Silver ETFs fell by 22–23%.
This Gold Silver Price Crash The main reasons are considered to be pressure in the international market and speculation regarding the new Chairman of the US Federal Reserve. Investors have moved towards profit booking. Experts recommend avoiding lump sum investment and in a phased manner, invest only 5–10% of the portfolio in gold or silver ETFs.
