The precious metals market witnessed a dramatic shift today, January 30, as gold and silver prices experienced a significant crash. In the early morning trade, heavy profit booking led to a sharp decline on the Multi Commodity Exchange (MCX). Silver prices took a massive hit, falling by as much as 17%, leaving investors startled. While the market has shown some signs of recovery since the opening bell, the overall sentiment remains volatile.
Massive Slump on MCX
On the MCX, silver prices witnessed a historic intraday drop. During the early hours, silver crashed by approximately ₹67,000, representing a 17% decline, while this brought the price of 1 kg of silver down to ₹3. 32 lakh. However, as the session progressed, some buying interest emerged at lower levels, and the metal is currently trading around ₹3. 51 lakh, still down by 12%.
Gold wasn't immune to this selling pressure, while on the MCX, gold prices fell by ₹15,000 (9%) during early trade, hitting a low of ₹1. 54 lakh per 10 grams. It has since recovered slightly and is currently trading at ₹1, while 64 lakh, marking a 3% decrease from the previous close. Interestingly, Gold and Silver ETFs also saw a massive correction of up to 23% today.
Bullion Market Rates and IBJA Data
According to the India Bullion and Jewellers Association (IBJA), the physical market also saw a substantial reduction in prices. Silver became cheaper by ₹40,638, while gold prices dropped by ₹9,545. As per the latest IBJA update, the price for 1 kg of silver stands at ₹3,39,350. Meanwhile, the rate for 10 grams of 24-carat gold has settled at ₹1,65,795.
Why the Price Difference Between MCX and Bullion?
Many buyers wonder why prices on MCX differ from those in the local bullion market. MCX is an electronic platform where gold and silver are traded as futures contracts. Much like the stock market, prices fluctuate every second based on global demand and supply. On the other hand, the bullion market refers to the physical purchase of the metal. The physical price includes additional costs such as transportation, storage, and local taxes, which is why the rates vary.
10-Day Price Trend Analysis
The last 10 days have been a roller coaster for precious metals. Starting from January 16, when gold was at ₹1,41,593 and silver at ₹2,81,890, the market saw a consistent upward trajectory. By January 29, prices peaked at ₹1,75,340 for gold and ₹3,79,988 for silver. Today's correction brings the prices back to levels seen earlier in the month, providing a potential entry point for long-term investors.
Essential Tips for Gold Buyers
If you're planning to buy gold during this price dip, keep two critical things in mind. First, always opt for BIS Hallmark certified gold. This alphanumeric code (e. g. , AZ4524) ensures the purity of the gold you're purchasing. Second, always cross-check the daily rates from reliable sources like the IBJA website. Remember that prices differ based on the purity level—24K, 22K, or 18K.
How to Identify Real Silver
To ensure you're buying genuine silver, you can perform four simple tests. The Magnet Test is the easiest; real silver is non-magnetic and won't stick to a magnet. The Ice Test is also effective, as real silver has high thermal conductivity, causing ice to melt rapidly on its surface. You can also try the Smell Test (real silver is odorless) or the Cloth Test (rubbing silver with a white cloth should leave a black mark if it's genuine).
[DISCLAIMER_START] This article is for informational purposes only. Consult your financial advisor before making any investment decisions.