Silver prices took a sharp turn on December 31, sliding more than 7% after hitting fresh record highs.
Silver futures tumble
On the Multi Commodity Exchange of India, March‑expiry silver futures fell to Rs 2,32,228 per kilogram, a drop of over 7%. The May‑expiry contracts slipped about 8% to Rs 2,35,512 per kilogram.
Effect on Hindustan Zinc
Hindustan Zinc, India’s biggest silver producer, saw its share price dip to Rs 611.05 in early trade. The stock had surged nearly 27% in the past month and was up more than 38% this year, largely thanks to the earlier rise in silver prices. Its current P/E ratio is around 26, with a market cap over Rs 2.60 lakh crore.
Silver ETFs also slide
Silver exchange‑traded funds fell as the metal price fell. Major funds such as Aditya Birla Silver ETF, Axis Silver ETF, Nippon India Silver ETF and several others dropped between 1% and 2%.
What may have caused the fall?
- Investors were likely booking profits after the recent rally.
- Improving chances of a peace deal between Russia and Ukraine could reduce demand for safe‑haven assets like silver.
Remember, this is just a perspective, not a prediction. Do your own research before making any investment decisions.