Why Silver Prices Are Crashing Ahead Of Dhanteras And Diwali? Check Rates In India, 15-Day Trend And List Of Factors Behind

Silver Price Today: while Diwali and Dhanteras are on their way, the spotlight usually stays on gold only. This time it is different. The traditional buying spree happens for other precious metals too. Amid this, a new trend has flared up, people are buying precious metals because the prices are crashing. 

According to recent data, the silver price has also crashed due to several reasons. While Dhanteras and Diwali typically inspire a shiny rally, silver is staging an unseasonal act. Defying festive tradition, global silver prices have plummeted below the psychological $50-per-ounce mark. Domestic MCX futures have taken a dramatic tumble from their annual high. 

A potent mix of hawkish global monetary policies, a surging US dollar, and aggressive speculative sell-offs has easily overpowered local celebratory demand. This price drop has come as good news for the buyers, domestically. 

On the global front, the macroeconomic headwinds are clearly not celebrating, leaving the precious metal firmly in the bargain bin this festive season.

Also Read: Gold Price Today: Why Are Gold Prices Rising? Check State-Wise 22K, 24K Rates And Key Reasons Behind The Small Surge

Silver Price Today In India  

Silver Price Today In India Across Top Cities

• Silver price today in Delhi: ₹1,99,900 per kg
• Silver price today in Mumbai: ₹1,99,900 per kg
• Silver price today in Chennai: ₹1,99,900 per kg
• Silver price today in Kolkata: ₹1,99,900 per kg
• Silver price today in Bengaluru: ₹1,99,900 per kg
• Silver price today in Hyderabad: ₹1,99,900 per kg
• Silver price today in Pune: ₹1,99,900 per kg
• Silver price today in Ahmedabad: ₹1,99,900 per kg
• Silver price today in Surat: ₹1,99,900 per kg
• Silver price today in Jaipur: ₹1,99,900 per kg
• Silver price today in Lucknow: ₹1,99,900 per kg
• Silver price today in Kanpur: ₹1,99,900 per kg
• Silver price today in Nagpur: ₹1,99,900 per kg
• Silver price today in Indore: ₹1,99,900 per kg
• Silver price today in Bhopal: ₹1,99,900 per kg
• Silver price today in Patna: ₹1,99,900 per kg
• Silver price today in Vadodara: ₹1,99,900 per kg
• Silver price today in Kochi: ₹1,99,900 per kg
• Silver price today in Visakhapatnam: ₹1,99,900 per kg
• Silver price today in Coimbatore: ₹1,99,900 per kg

List Of Reasons Behind The Silver Price Crash 

Hawkish US Monetary Policy

According to the trends, when economic data flexes unexpectedly and crude oil prices climb, inflation fears swiftly crash the market and all the commodities in it. When the Federal Reserve keeps interest rates high, holding metals like silver becomes less attractive because they don't pay any interest or dividends. 

As a result, investors prefer to move their money into other options, like bonds or savings accounts, that offer higher returns. 

According to recent data, rising crude oil prices, as Brent crossed 110–116 dollars per barrel, have raised concerns over energy-driven inflation. 

Instead of easing down, the US Federal Reserve is expected to maintain higher interest rates, and this adds to the pressure, becoming the basic reason behind the silver or gold price crash this season.

Surging Inflation Expectations

When energy prices rise, inflation fears grow, forcing central banks to keep interest rates high. High interest rates make holding silver less attractive because it does not earn any interest or dividends. 

Because keeping money in silver means missing out on better earnings elsewhere, investors quickly move their money into higher-paying assets like bonds or savings accounts, leaving silver behind despite the festive buying season.

Stronger US Dollar and High Domestic Duties

A strong US dollar makes silver much more expensive for buyers around the world using other currencies. At the same time in India, high import taxes and local market costs make physical silver pricey. Even the strong festive demand during Diwali isn't enough to boost sales, as high prices and currency rates continue to keep buyers away. But the opposite is happening right now, due to a fall in the dollar, the precious metal around the world has gone below its psychological price band. 

Silver Price Trends In Last 15 Days