Silver Price Crash: Silver fell by Rs 21 thousand in an hour, know why there was an earthquake in prices after record high?
New Delhi. There was a huge fall in silver prices in the country today within an hour. March futures on MCX fell by Rs 21,000 per kg in an hour to reach a low of Rs 2,33,120. This fall came after the prices had reached a record high of Rs 2,54,174 at the beginning of the day.
Read :- Gold Silver Rate Today: Rise in gold and silver, know the rate before buying.
impact of international market
Fluctuations in silver prices were also seen in the international market. On Monday, prices crossed $80 an ounce for the first time, but later fell below $75 amid profit-taking selling and news of peace talks between US President Trump and Ukrainian President Zelenskyy.
main reason for decline
The biggest reasons for this decline are profit booking by investors and reduction in geopolitical tension. Safe-haven demand decreased on news of a possible peace deal in the Ukraine war. Additionally, the unprecedented 181% gain in silver since the beginning of the year also led to this sharp profit-booking.
Read :- Gold Silver Rate: Slight increase in gold price, silver becomes cheaper, know the price of major cities
expert opinion
Analysts believe that the trend of silver is still positive, but it will remain volatile. According to Jigar Trivedi of Reliance Securities, the level of Rs 2.4 lakh per kg is short-term support. At the same time, American firm BTIG has warned that such a sharp rise in prices is not sustainable and may be followed by a sharp decline.
Fear of disaster like 1979 and 2011
Manish Banthia of ICICI Prudential Mutual Fund, citing examples from history, said that such spectacular gains in silver usually do not end peacefully. He said that in 1979-80 and 2011 also, after skyrocketing, silver prices had fallen by more than 90 per cent and 75 per cent respectively. Prices have increased almost three times in the last year, so vigilance is necessary.
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