Silver ETF Crash: After a strong rally in silver prices, its shine is now fading. After reaching all-time high, now investors have started booking profits. Therefore, a huge decline has also been recorded in Silver Exchange Traded Funds i.e. ETFs. There has been a decline of about 20 percent in silver ETFs from record high. After the huge fall of 7.1 percent in the international market on Tuesday, the fear of selling among investors has increased. The strong US dollar and risk aversion sentiment in the commodity market have played an important role in stopping the silver rally.
Because of this the prices had increased!
Short supply pressure in the silver markets of London, Shanghai and Mumbai pushed prices to record high levels, creating an atmosphere similar to the Hunt Brothers scam of the 1980s. Recently, benchmark spot rates moved above New York futures, sending physical silver to London.
Today silver price fell by 3% on MCX
On Wednesday, in the evening trade on Multi Commodity Exchange (MCX), silver fell by almost 3 percent and made an intraday low at Rs 143819 per kg. Earlier on Tuesday, it fell by Rs 327 or 0.22% to close at Rs 1,50,000 per kg. This decline is being seen after the decline in the global market.
Prices will fall further
Experts say that prices may go down further. On the other hand, the bullion market has eroded the premium over international prices and ETFs are trading at a discount. Aditya Birla Sun Life Silver ETF Fund of Funds has announced the resumption of new subscriptions from October 23.
Experts gave this advice
The fall of almost 20 percent in silver ETFs has created panic among investors. Experts say that consumer demand may increase after Diwali, which may support prices. But global uncertainties and a strong dollar may hold in the short term. Investors are advised to start with small investments and keep an eye on market trends. The long term prospects of silver are strong, but caution is necessary now.