Silver Prices Hit 10-Month Low Ahead of Festivals as Experts Advise Step-by-Step Buying

Silver prices have dropped sharply during the ongoing festive season, reaching a 10-month low of 1.91 lakh rupees per kilogram on the Multi Commodity Exchange on Tuesday, October 27. Prices fell by 4,000 rupees per kilogram in a single day, recording a two percent decline during trading hours. This follows an all-time high of 4.21 lakh rupees per kilogram reached in January of the same year, meaning silver is now roughly 2.30 lakh rupees cheaper than its peak, trading about 53 to 54 percent lower. Market experts note that technical indicators place silver in an oversold zone, but advise against investing all capital at once. Instead, buyers looking to purchase around one kilogram can spread their investment over the next three months using a systematic installment plan, buying about 250 grams initially. For digital investments, Silver ETFs or Silver Mutual Fund FoFs are suggested to avoid the making charges and GST associated with physical silver, though physical buyers are advised to stick to coins or bars. The recent price drop is driven by rising US dollar index values and global bond yields amid US Federal Reserve monetary policy meetings, which put pressure on precious metals with COMEX silver trading near 54 dollars an ounce. A global manufacturing slowdown has also caused a slight dip in industrial demand, while festival and Karva Chauth celebrations in places like Udaipur have simultaneously driven strong local retail footfall and customer excitement at jewelry showrooms.

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Precious metals like silver often see fluctuating prices driven by a mix of international economic factors, currency values, and domestic festival demand in India. Buying in installments helps investors manage market volatility rather than risking all funds at a single price point.