Silver on MCX Hits Record High of ₹2 Lakh/kg, Followed by Sharp Decline
Silver Price Crash: Silver prices surprised investors and market observers last week. On the final trading day, Friday, Silver Price exhibited volatility that few anticipated. Immediately after trading began, silver surged rapidly, crossing the ₹2 lakh per kilogram mark on the Multi Commodity Exchange (MCX) for the first time. However, this surge was short-lived. After reaching a record high, a Silver Price Crash occurred, causing silver to plummet nearly ₹9,000 in a single instance, leaving investors stunned.
MCX Silver Reaches New Record
On Friday, silver opened on MCX at ₹1,97,705 per kilogram with a decline. However, b buying interest emerged shortly after the opening, causing the price to rise rapidly. During trading, silver crossed the psychological level of ₹2 lakh per kilogram for the first time, reaching a new lifetime high of ₹2,01,615 per kilogram.
Silver Plummets After Record High
After reaching a new peak, profit-taking suddenly emerged in the market. This resulted in a sharp decline in silver prices. Silver quickly fell from its high by ₹11,538, reaching ₹1,90,077 per kilogram. The decline was so rapid that many investors were caught off guard. Although some recovery was seen in the final hours of trading, silver still closed at ₹1,92,615 per kilogram, approximately ₹9,000 cheaper than its high.
Silver Price Increase This Month
Throughout the month, silver has shown good performance. On December 1st, the price of silver on MCX was ₹1,82,030 per kilogram. Compared to Friday's closing price of ₹1,92,615, it has increased by ₹10,585 so far. Thus, despite the significant decline in between, silver remains in a b position on a monthly basis.
High Volatility Raises Concerns
This sharp volatility in silver prices has become a concern for small investors. While record highs attract new investors, the sudden sharp decline also increases risk. Experts believe that silver's volatility is due to signals from international markets and profit-taking.
Silver Maintains Shine in the Domestic Market
Silver prices in the domestic market have shown strength compared to MCX. According to the Indian Bullion Jewelers Association (IBJA) website, on December 5th, the price of 1 kg of silver in the domestic market was ₹1,78,210. By the end of trading on Friday, it had increased to ₹1,95,180 per kilogram.
Increase of Approximately ₹17,000 in Five Days
If we consider only the past week, silver prices in the domestic market have risen sharply. Silver has become approximately ₹16,970 more expensive in five trading days. This figure clearly shows that demand remains b in the physical market despite the volatility on MCX.
Gold Rate Also Shows Strength
Along with silver, gold prices also saw an increase last week. The Gold Rate in the domestic market rose by ₹4,118 during the week. According to IBJA data, the price of 24-carat gold on December 5th was ₹1,28,592 per 10 grams, which increased to ₹1,32,710 per 10 grams on Friday.
Gold Performance on MCX
Gold prices also remained b on MCX. 24-carat gold with a February 5th expiry closed at ₹1,30,462 on December 5th. After five trading days, it closed at ₹1,33,622 per kilogram. Thus, MCX Gold Price recorded an increase of approximately ₹3,160.
