If you've been watching the commodity markets lately, you know it's been a bit of a rollercoaster. But what happened with silver prices last week was something else entirely—truly astonishing stuff. We saw the precious metal go on a wild, storm-like surge, breaking records and crossing a psychological barrier that left many traders speechless. Then, just as quickly as it rose, it came tumbling down in a dramatic crash. Let's dive into what exactly happened.
Key Highlights
- ✓ Silver prices on the MCX hit a historic, all-time high of ₹2,01,615 per kg.
- ✓ In a sudden crash, silver plummeted by over ₹11,000, ending the day roughly ₹9,000 cheaper than its peak.
- ✓ In stark contrast, domestic silver prices surged by nearly ₹17,000 in just five trading days.
- ✓ Gold wasn't left behind, with prices for 10 grams of 24-carat gold jumping by ₹4,118 in a single week.
- ✓ After a weekend of extreme volatility, markets in Rajasthan showed surprising stability.
The Unbelievable Rollercoaster on the MCX
The real drama unfolded on the Multi Commodity Exchange (MCX) last Friday. The day started with silver opening at ₹1,97,705 per kilogram. Right from the get-go, prices started climbing, and they didn't just climb—they rocketed. During the trading session, silver prices gathered an incredible momentum, smashing through all previous barriers.
For the first time ever, silver crossed the massive ₹2 lakh mark. It reached a breathtaking, new lifetime high of ₹2,01,615 per kg. You can just imagine the excitement and frenzy in the market at that moment. But, as they say, what goes up must come down. And in this case, it came down hard and fast.
Almost immediately after touching that historic peak, a sudden Silver Price Crash occurred. The price took a nosedive, falling by a staggering ₹11,538 in a single jolt to land at ₹1,90,077 per kg. Although there was a slight recovery by the time the market closed, the futures price still ended the day at ₹1,92,615 per kg. That means it was a whole ₹9,000 cheaper than the high it had hit just hours earlier. What a ride.
A Volatile Month Overall
This single day of chaos was part of a larger trend of volatility throughout this final month of the year. Current trends reveal that If we zoom out and look at December as a whole, silver prices have actually seen a significant increase. On the first of the month, MCX Silver Price was trading at ₹1,82,030 per kilogram.
Comparing that to Friday's closing price, we see a net increase of ₹10,585 per kg for the month so far. So, despite the dramatic crash from its peak, the overall trajectory for silver has been sharply upward. It's a classic case of reaching new peaks while also experiencing some incredibly sharp dips along the way.
A Different Story in the Domestic Market
Now, here's where things get really captivating. While the MCX futures market was experiencing that massive crash, the story in the domestic physical market was completely different. Far from crashing, the shine of silver actually grew brighter. According to the Indian Bullion and Jewellers Association (IBJA), domestic prices have been on a steady rise.
Let's look at the numbers from IBJA. Com. Just a week ago, on December 5th, the price for 1 KG of silver in the domestic market was ₹1,78,210. By the time the market closed last Friday, that same kilogram of silver was priced at ₹1,95,180. A quick calculation shows that's a massive jump of ₹16,970 in just five trading days. This shows a clear divergence between the futures and physical markets. Market evidence demonstrates that
Gold Isn't Watching from the Sidelines
Of course, when silver is making such big moves, you can be sure gold isn't far behind. The Gold Rate also saw some significant upward movement last week. In the domestic market, the price of gold surged by ₹4,118 per 10 grams in just one week. On December 5th, 10 grams of 24-carat gold was priced at ₹1,28,592. By last Friday, it had climbed to ₹1,32,710.
The MCX gold futures market reflected a similar trend. The 24-carat gold contract expiring on February 5th closed at ₹1,33,622 per 10 grams, which was a ₹3,160 increase from its price of ₹1,30,462 just five days earlier. It’s important to remember that when you're buying jewelry, these rates have additional costs. Customers have to pay a 3% GST on gold, along with making charges, which can vary from city to city.
A Moment of Calm After the Storm in Rajasthan
After such a wild and turbulent week, the market seemed to take a breather. On Monday, following the weekend of dramatic fluctuations, the bullion market in Rajasthan was surprisingly stable. There were no major changes in the prices of either gold or silver, suggesting that buyers and investors were adopting a wait-and-see approach.
In major cities across the state, including Jaipur, Jodhpur, Kota, Ajmer, and Udaipur, prices held steady. Pure silver was quoted at ₹1,86,200 per kg, while 24-carat gold was trading at ₹1,31,200 per 10 grams. This stability came after a Saturday where Jaipur saw gold hit a record ₹1,35,200 per 10 grams, showing just how quickly the sentiment can shift from frenzy to caution.
Conclusion
The bottom line is that the precious metals market just gave us a week for the history books. We witnessed silver's incredible, record-breaking surge past the ₹2 lakh mark on the MCX, followed by an equally dramatic crash. Current trends reveal that Meanwhile, the domestic physical market told a story of relentless upward momentum for both silver and gold. The week ended with a sense of calm, but it's clear that the market is alive with energy. For now, it seems traders and investors are catching their breath, waiting to see which way the wind will blow next.
