New Delhi: After the strong rise in silver prices, it is now falling steadily downwards. With this, the luster of the silver ETF has also faded. Until recently, silver prices were skyrocketing, but now it is witnessing a sharp decline. Since October 15, the silver ETF has decreased by about 19 percent. In the global market too, silver prices have dropped by 7.1 percent, because the US dollar has strengthened and the vigilance in the commodity market has increased. Earlier on 20 October, silver exchange-traded funds recorded a major decline of up to 7 percent. After the Diwali holidays, when the markets reopen on Thursday, there is a possibility of further fall in prices.
Silver prices
In India, the price of silver on MCX fell by 0.22 percent i.e. Rs 327 to 1,50,000 per kg in the Muhurat trading session. The markets were closed till Wednesday morning and now when trading starts on Thursday evening, the prices may fall further. Meanwhile, the Aditya Birla Sun Life Silver ETF Fund of Fund has announced the launch of new investments from October 23. This decision was taken because ETFs are no longer trading at a premium as before but at a lower price than global prices. This is a sign that the speculation phase in the market is coming to an end.
Why did the Silver prices fall?
In the last few days, the prices of gold and silver have fallen for two consecutive sessions. The reason for this is the statement made by US President Donald Trump that he cannot meet with the Chinese President soon. This shattered the hopes of ending the trade war soon. The rise in silver and gold prices was due to several reasons, such as the expectation of interest rate cuts, a weakening dollar, a decrease in bond yields, purchases from central banks and the demand for safer investments.
What do experts say on Silver investment?
According to Motilal Oswal Commodity Research, silver prices may remain in the range of 50-55 dollars per ounce in the near future. But by the year 2026 it can reach 75 dollars and 77 dollars by the year 2027. If the exchange rate of US dollar and Indian rupees is assumed to be 90 rupees, then it will be equal to about 2.4 lakh rupees per kg in India. Bank of America is also positive on silver and its target is $65 per ounce. However, the demand for silver may decrease by 11 percent next year, but due to supply shortage, the prices will be supported.
According to the brokerage firm’s report, silver crossed $35 per ounce from January to June this year, touched a 14-year high of $44.11 per ounce in September and set a new record with $51.30 per ounce in October. Silver prices rose 1.7 times faster than gold this year.
What should Silver investors do?
If you are investing in silver ETFs, it is important to understand that the current decline may be a correction. If you want to invest for a long time, then this fall can be a good opportunity to buy, because experts believe that silver prices will rise in the future. But if you have previously invested at high prices and want to make profits, you can sell part of your investment.
Data Source: MCX, Motilal Oswal Commodity Research
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, gold, silver and crypto assets.)