AFTER a stellar run-up in January, the gold and silver prices are now witnessing a massive sell-off by investors triggered by easing geopolitical tensions in West Asia. The gold and silver prices plunged over 20 per cent and 40 per cent, respectively. Experts in the bullion market consider this decline as a good opportunity to buy gold and silver as both the precious metals have fallen by a wide margin from their record high levels. In a span of five months the gold price has plunged by Rs 41,000 per 10 grams, while silver crashed by Rs 174,000 per kg in the Itwari Sarafa Bazar. On June 20, the gold price fell by Rs 41,000, to Rs 1,51,000 per 10 grams (inclusive of all taxes). The precious metal had hit an all-time high of Rs 1,92,000 per 10 grams on January 29. Similarly, silver tumbled by Rs 174,000, to Rs 2,43,000 per kilogram (inclusive of all taxes).

 

The white metal had hit a record high of Rs 4,17,000 per kg on January 29. Experts in the market feel that the current fall in gold and silver prices is a temporary phase. With the start of the wedding season the prices are set to rise in the coming days. “Every fall in gold and silver prices offers a good buying opportunity. The prices of both the precious metal prices are expected to surge because it is estimated that 45 lakh weddings are expected to take place in the country. People should take benefit of the lower prices and purchase gold and silver as per their budgets,” said Rajesh Rokde, Director of Rokde Jewellers and Chairman of All India Gem and Jewellery Domestic Council (GJC) while speaking to The Hitavada. Rokde further said that the gold and silver prices have corrected over the past five months due to a combination of factors, including profit booking, a stronger US dollar, and shifting investor sentiment towards other assets. He does not rule out that the prices from the current levels could fall by another 5 to 10 per cent. Suggesting that the gold and silver prices have nearly bottomed out which offers a good accumulating proposition. He advises that a person should buy in small quantities every month.

 

Kishor Sheth, Director of Batukbhai Jewellers, Shankarnagar said that the gold and silver prices witnessed a healthy correction. This correction offers people a good opportunity to buy gold and silver as per their budgets. Buying has picked up due to the start of the wedding season. He expects the precious metal prices to strengthen in the coming days due strong domestic demand in the country. He further said that the steep fall was fuelled by aggressive profit-taking, with institutional investors and hedge funds liquidating their positions after a significant rally in the metals. Silver was affected due to its industrial demand and leveraged futures trading, making it more sensitive to risk sentiment.