In a sharp reversal of two consecutive gaining sessions, precious metals witnessed a significant downturn on Wednesday as gold and silver prices crashed across domestic markets. The decline comes just two weeks after both metals scaled all-time highs in late January, leaving investors and jewellery buyers recalibrating their expectations.
Silver Suffers Steepest Fall, Down ₹1.27 Lakh From Peak
According to data from the India Bullion and Jewellers Association (IBJA), silver prices tumbled by ₹1,000 to settle at ₹2.58 lakh per kilogram, dropping from Tuesday's ₹2.59 lakh. What's more alarming for bullion investors is the sheer scale of the correction—silver is now a staggering ₹1.27 lakh cheaper than its lifetime high of ₹3.86 lakh per kg recorded on January 29.
Gold Extends Losses, Down ₹20,008 From Record High
The yellow metal failed to hold its ground as well. 24-carat gold eased by ₹142 to trade at ₹1.56 lakh per 10 grams, slipping from Monday's levels. The current price represents a massive ₹20,008 drop from the historic peak of ₹1.76 lakh per 10 grams touched less than two weeks ago.
Market analysts attribute this correction to profit-booking at higher levels and shifting global sentiment ahead of key US inflation data.
Why You Pay More at Your Local Jeweller: City-Wise Rates Explained
A common confusion among buyers is why city-wise gold rates vary despite a single IBJA benchmark. The association's rates exclude 3% GST, making charges, and jeweller's margins—all of which differ across cities and retailers.
These benchmark rates, however, remain crucial as the RBI uses them to price Sovereign Gold Bonds, while banks rely on them for gold loan valuations.
4 Non-Negotiables Before You Buy Gold or Silver
With prices correcting from record highs, many buyers see this as an entry opportunity. But before you swipe that card, here are actionable checks:
For Gold Buyers:
- Hallmark is mandatory: Only purchase BIS-hallmarked gold. The 6-digit alphanumeric code on the hallmark verifies purity and carat value.
- Cross-verify rates: Always check the day's IBJA rate. Prices differ for 24, 22, and 18-carat gold. Don't rely solely on the jeweller's word.
For Silver Buyers: Simple Tests at Home
1. Magnet Test: Pure silver is non-magnetic. If your coin or bar sticks, it's fake.
2. Ice Test: Silver has the highest thermal conductivity. Place an ice cube on it—real silver melts ice almost instantly.
3. Smell Test: Authentic silver is odourless. A metallic or sulfur smell indicates adulteration.
4. Cloth Test: Rub the item firmly with a soft white cloth. Genuine silver leaves a characteristic blackish mark.
Outlook: What Next for Bullion?
With the gold and silver prices crash accelerating, industry experts suggest this could be a healthy correction in an otherwise bull run. The upcoming Union Budget and US Federal Reserve's rate decision will be the next major catalysts.
For now, certified purchases and price verification remain the only safeguards for retail consumers navigating volatile markets.
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