In less than four days, silver prices have fallen by more than 46 percent.Image Credit source: ChatGPT
On January 29, silver had made a record of life time high in the country’s futures market Multi Commodity Exchange. In the afternoon, the price of silver had reached a record level of Rs 4.20 lakh. But no one knew that in just 70 to 80 hours the prices of silver would start hitting the ground. Yes, in less than 4 days a decline of 46 percent has been seen in the prices of silver.
This decline has left behind that record, when the prices of silver had fallen drastically in the international market in 1980. At that time, silver prices had fallen 70 percent from their peak in 5 months. Here it has fallen by more than 46 percent in just a few days. Such a decline was not seen even in 1980.
Now the biggest question that has arisen is how much further the price of silver will go down? Will we see a 70 percent fall in silver prices like in 1980? If this happens then the price of silver is likely to reach Rs 1.25 lakh. But this seems quite difficult. Experts believe that the price of silver may come below Rs 2 lakh. There are some reasons for that also. The first biggest reason is the increase in gold silver ratio. After that, the Federal Reserve should not cut interest rates.
There have been indications in the Federal Reserve meeting that common people may have to wait for a long time for interest rate cuts. The increase in dollar index is also a big reason. Besides, reduction in geo-economic tension is also a big reason. Let us also tell you at what level the prices of silver can be seen in the next few days…
Silver fell 46 percent from peak
On Monday, silver prices on the country’s futures market Multi Commodity Exchange fell by more than 46 percent from the peak. If we look at the data, on January 29, silver prices had crossed the level of Rs 4.20 lakh per kg. Since then, there has been a continuous decline in silver prices. During the trading session on Monday, the price of silver appeared at lower level at Rs 2,25,805. This means that silver prices have seen a decline of more than 46 percent in less than 4 days. Such a sharp decline in silver has never been seen since 1980. Some experts even say that such a sharp decline was not seen even in the year 1980.
Silver lost around Rs 2 lakh in 70 to 80 hours
If we look at this fall in rupee terms, then in the last 70 to 80 hours a fall of about Rs 2 lakh has been seen in the price of silver. The price of silver was at a peak of Rs 4.20 lakh. Which appeared at the level of Rs 2.25 lakh. This means that a fall of Rs 1.94 lakh has been seen in the prices of silver. That is, after reaching the peak, a decline of Rs 2,400 has been seen in the price of silver every hour. Because of which not only silver investors but all types of investors of the world are being surprised. Experts believe that further decline in the price of silver may be seen in the coming days.
What is the current status of silver?
A decline in silver prices is seen at 1:45 pm. If we look at the data, there is a fall of Rs 32,342 in the price of silver and the price is seen at Rs 2,35,339. However, the price of silver opened at Rs 2,67,501 in the morning. Whereas during special trading on Sunday, the price of silver closed at Rs 2,65,652. Experts say that the price of silver will continue to fall. Prices can be seen below Rs 2 lakh.
Will silver fall below Rs 2 lakh?
If a fall of Rs 25 thousand is seen in the prices of silver on Tuesday, then the prices may fall below Rs 2 lakh. According to experts, this fall in silver prices seems to be breaking the record of the last 50 years. In the year 1980, silver prices fell 70 percent from the peak in 5 months. At present the prices have fallen by more than 46 percent in 4 days. Silver prices may fall by up to 50 percent during the trading day. Which is considered to be the biggest decline so far.
Why are silver prices falling?
While talking to TV9 Hindi Digital, Ajay Kedia, Director of Kedia Advisory, said that the major reason for the fall in silver prices is the gold silver ratio. At present the gold silver ratio has crossed the level of 61. In the last few days, an increase of more than 42 percent has been seen in the gold silver ratio. He said that the gold silver ratio is likely to reach the level of 70. If this happens in a few days, then silver prices may be seen below Rs 2 lakh in the futures market of the country. At the same time, he said that the Fed is not considering any rate cut in the current year. If the rate is cut then it can be seen in the meeting of June or July. After that the common people may have to wait for a long time.