Stories
Gold and Silver Prices Crash: 6.58 Lakh Crore Wiped Out in 14 Minutes
- •A massive slump in global gold and silver prices occurred following the latest US inflation data release.
- •Approximately 6.58 lakh crore rupees were wiped out from the total market value of gold and silver in a single stroke.
- •China connection involves solar panel manufacturers cutting jobs and adopting technologies to reduce silver usage, impacting industrial demand.
- •Experts estimate that silver prices could decline by another 15 percent in the near future, bringing potential relief to consumers.
Key Questions Answered
A sharp rise in the US inflation rate, which increased from 3.4% to 3.7% according to September CPI data released on October 14, triggered the market decline. This caused investors to fear that the Federal Reserve would delay interest rate cuts or raise rates, boosting the US dollar and Treasury bond yields and driving money away from precious metals.
Silver dropped sharply from ₹2,11,143 per kg on October 14 to ₹2,00,009 per kg on October 15, marking a single-day decline of about ₹11,134 or 5.3%. Previously, silver prices hovered around ₹2,13,822 per kg and gold around ₹1,49,995 per 10 grams.
Major solar panel manufacturers in China are facing overcapacity and losses, leading to significant job cuts. Because high silver prices prompted manufacturers to develop techniques reducing silver usage or substituting it with cheaper metals like copper, industrial demand for silver is expected to decline.
