By Admin 
Silver Price Crash: Today, Thursday, February 5, a big fall was seen in the prices of silver. As of 9:36 am Indian time on MCX (Multi Commodity Exchange), silver prices were at Rs 2,46,257 per kg, which is 8.4 percent less than the previous closing price. Before this big fall, the price of silver had opened at Rs 2,52,719.
Today the price of silver on Comex in the international market was $ 81 per ounce, which is 3.74 percent less than the previous closing. However, before the fall, silver also rose by about 25 percent. Similarly, today the price of silver has fallen by Rs 20,000 per kg in the retail market.
There was a rise in the price a day ago
There was a sharp rise in silver prices in India on Wednesday. Due to this, its price reached the level of Rs 320 per gram and Rs 3,20,000 per kilogram. In January, silver prices had crossed Rs 4 lakh, but later it declined rapidly.
After the rise on Wednesday, today the price of silver has fallen by Rs 20,000 per kg, due to which its price is now Rs 3,00,000. At the same time, silver is currently being sold at Rs 300 per gram. Along with this, in all the big cities like Delhi, Mumbai, Chennai, Bengaluru, Hyderabad, Ahmedabad, Jaipur, today the price of 1 gram silver is Rs 3000, the price of 100 grams silver is Rs 3000 and the price of 1 kg silver is Rs 3,00,000.
Why did the price fall?
Actually, the standoff between the US military and Iran in the Arabian Sea increased the safe-haven demand, but the market is currently waiting for the new round of nuclear talks to be held on Friday. Apart from this, the prices of silver and other precious metals are reacting negatively to the rise in the US dollar. The US dollar index is now trading near the 98 mark, whereas it had fallen to a four-year low in late January.
There is an inverse relationship between the dollar index and precious metals like gold and silver. When the dollar strengthens, their prices fall because the price of gold and silver is fixed in dollars. In such a situation, when the dollar strengthens, it becomes expensive for buyers using other currencies like rupee to buy gold and silver. Due to this, demand reduces at the global level and a fall in prices is seen.
Additionally, when the dollar is strong, investors prefer to invest in the dollar rather than non-interest bearing assets like silver. Silver is a non-interest asset because it does not generate any additional money, interest or dividends just by holding it.
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