Editor’s Note
This article highlights the recent volatility in precious metals markets, with sharp declines following recent record highs. Such fluctuations underscore the unpredictable nature of commodity trading. Investors are advised to exercise caution and consider long-term trends alongside daily price movements.
The precious metals market is witnessing such volatility these days that even investors are confused. Those who were surprised by the record highs a few days ago are now shocked by the sudden decline. On the very first day of this week, Monday, February 16, sharp declines were once again recorded in precious metals, with silver prices particularly surprising everyone.
A significant drop of around 9,000 rupees was seen in silver prices. On February 16, at the start of the day, silver on MCX fell by nearly 4% to around 2,35,208 rupees per kg. This level is approximately 1.85 lakh rupees below its all-time high. However, interestingly, as soon as prices fell, a crowd of buyers surged into the market, and by evening, silver recovered to around 2,40,441 rupees per kg.
Along with silver, gold prices also appeared under pressure. Around 6 PM on Monday, gold was trading at 1,55,180 rupees per 10 grams, down by 715 rupees. During the day, gold fell by more than one percent. It is noteworthy that gold has now become cheaper by about 40 thousand rupees from its record high.
If we look at the trend over the past month, the fluctuations have been quite sharp. On January 29, silver reached a record level of 4,20,048 rupees per kg, while gold was at its peak of 1,93,096 rupees per 10 grams on the same day. Subsequently, profit-booking and market movements pulled both metals down. However, the strong buying pressure on every major decline indicates that investor confidence remains intact.
A mixed trend was also observed in Delhi’s Sarafa market. On Monday, the price of silver fell by about 5000 rupees to 2.50 lakh rupees per kg. On the other hand, gold closed 700 rupees higher. According to data from the All India Sarafa Association, a decline of about 2% was recorded in silver.
The picture still looks strong for long-term investors. In February 2025, the price of gold was around 85 thousand rupees per 10 grams, meaning it has delivered a return of almost 80% in one year. Silver went even further, delivering a return of about two and a half times, as its price was around 1 lakh rupees per kg a year ago.
Gold and silver are no longer just traditional investments. A recent survey indicates that about 62% of Gen Z and Millennials still consider gold the safest investment. The key point is that youth are now investing in small amounts. Most people are buying less than 5 grams of gold and making decisions themselves, not under family pressure.
Experts believe that the current decline is not something to fear, but rather needs to be viewed with understanding. Whenever there is a sharp decline in the market, buying pressure pushes prices back up. In such a situation, instead of rushing into investments, it would be wiser to make decisions with the right strategy and a long-term perspective. Overall, the movement of gold and silver is currently like a roller coaster. Opportunities still exist for investors who navigate these ups and downs with understanding.