In a surprising turn of events for the Indian bullion market, gold and silver prices have witnessed a significant correction today, Thursday, January 22, while after a prolonged period of record-breaking highs, the prices have finally cooled down, offering a major sigh of relief to buyers and investors alike. According to the India Bullion and Jewellers Association (IBJA), silver prices have plummeted by nearly 5%, leading to a massive saving of approximately ₹15,000 per kilogram compared to previous peaks.
Silver Prices Plunge by ₹15,000 per Kilogram
The silver market opened on a bearish note today, with prices starting at ₹3,03,584 per kg, while this is a sharp decline from yesterday's closing price of ₹3,19,097. Interestingly, during yesterday's trading session, silver had touched an all-time high of ₹3,20,075. This sudden drop of over ₹15,000 in a single day is being viewed as a golden opportunity for those who were waiting for a price correction to enter the market.
Gold Rates See a Sharp Decline
Gold has followed the downward trajectory of silver. The price of 24-carat gold fell by ₹2,728, bringing it down to ₹1,51,499 per 10 grams, while just a day prior, gold had reached a record high of ₹1,55,204 before closing at ₹1,54,277. For families planning jewelry purchases for the ongoing wedding season, this price cut comes as a significant financial relief.
Top 3 Reasons Behind the Price Drop
Market analysts have identified three primary factors contributing to this sudden slump. Firstly, profit booking by investors who had gained Notably during the recent rally has led to increased selling pressure. Secondly, the resurgence of the stock market has diverted funds away from safe-haven assets like gold and silver. Lastly, a slight de-escalation in global geopolitical tensions has reduced. The panic-buying sentiment that usually drives up precious metal prices.
Expert Advice for Investors
Financial experts suggest that if you're planning a fresh investment, it might be wise to wait a little longer. The current phase of profit booking could potentially drive prices even lower in the coming days. However, for those who have already invested at higher price points, experts advise against panic selling. The long-term fundamentals of precious metals remain strong, and holding onto your assets is recommended for better returns in the future.
Historical Performance in 2025
The year 2025 has been phenomenal for gold and silver investors. Gold prices surged by 75% over the year, rising from ₹76,162 on December 31, 2024, to ₹1,33,195 by the end of 2025. Silver outperformed almost every other asset class with a staggering 167% growth. Starting at ₹86,017 per kg at the end of 2024, it reached a massive ₹2,30,420 by the end of 2025, proving its mettle as a high-growth investment.
Ways to Invest in Gold and Silver
For those looking to capitalize on this price dip, there are two popular methods. The traditional way is buying physical gold or silver in the form of coins, bars, or jewelry. The more modern and efficient way is through Gold and Silver Exchange Traded Funds (ETFs). ETFs offer the benefit of high liquidity and eliminate concerns regarding storage and purity, making them an ideal choice for modern investors.
