The decline in gold and silver prices has brought relief to those shopping for Dhanteras and Diwali. The price of silver has fallen below ₹2 lakh per kilogram, while gold has also become significantly cheaper than its record high.
धनतेरस-दिवाली पर खरीदारी करने वालों की चांदी ही चांदी ₹2 लाख से नीचे, सोना भी ₹50,000 तक सस्ता
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- A significant drop in gold and silver prices has occurred ahead of Dhanteras.
- On October 23, the price of silver fell below ₹2 lakh per kilogram.
- Compared to September 30, gold has become cheaper by ₹6,258, and silver by ₹26,020.
- There are various investment options available, including Gold ETFs, physical gold, and Sovereign Gold Bonds (SGBs).
The decline in prices brings relief to those planning to purchase gold and silver for the upcoming Dhanteras, Diwali, and wedding season. The price of silver has dropped below ₹2 lakh per kilogram, while gold is also reported to be approximately ₹50,000 cheaper than its record high. Consequently, buyers are keeping a close watch on the prices of these precious metals ahead of the festive season. In India, purchasing gold and silver on Dhanteras is considered auspicious; therefore, demand is expected to rise in the coming days.
Gold cheaper by ₹6,258 and silver by ₹26,020 in 24 days
According to data from the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold was ₹1,47,888 per 10 grams on September 30. By October 23, it had fallen to ₹1,41,630—a decrease of ₹6,258 over 24 days.
During the same period, the price of 22-carat gold also declined. On September 30, it was priced at ₹1,35,915 per 10 grams, which dropped to ₹1,29,566 by October 23—a decrease of ₹6,349.
Silver prices have seen a sharper decline compared to gold. On September 30, the price of one kilogram of silver was ₹2,20,435; by October 23, it had fallen to ₹1,94,415. Consequently, silver became cheaper by ₹26,020 over 24 days, with its price dropping below ₹2 lakh per kilogram.
Silver falls to nearly half its record-high price
The extent of the decline in silver prices can be gauged by comparing it to its record-high level. On January 29, 2026, the futures price of silver on the MCX reached a record high of ₹4,20,048 per kilogram. Compared to that, its current price is approximately 50% lower. On Friday, October 23, the futures price of silver on the MCX fell below ₹2 lakh per kilogram.
Gold also showed weakness this week. Futures prices for gold on the MCX declined by about 3.50%. On Friday, gold fell by 0.92%—a decrease of ₹1,315—to close at approximately ₹1,41,994 per 10 grams. Gold recorded a decline of about 4% this week, marking its worst weekly performance since June. Gold’s previous record high was around ₹1.93 lakh per 10 grams; compared to that, it is now approximately ₹50,000 cheaper.
What is the reason for the decline in gold and silver prices?
Concerns regarding inflation have intensified amidst rising tensions in the Middle East. Additionally, market expectations concerning U.S. interest rates have influenced gold prices. Interest rates are expected to remain steady during the U.S. Federal Reserve’s meeting on October 27–28, while there is also discussion regarding the possibility of a rate hike in December.
Higher interest rates can exert pressure on gold, as the metal does not generate interest. In such an environment, the prices of gold and silver may continue to fluctuate, depending on investor preferences and market trends.
What options are available for investing in gold?
For those considering an investment following the sharp decline in gold and silver prices, various options are available. However, each option differs in terms of cost and accessibility.
- Gold ETFs: Since October 16, several mutual fund companies have stopped accepting new inflows into their Gold ETF ‘Fund of Funds’ (FoF) schemes. However, the option to purchase Gold ETFs directly on the stock exchange remains open. Existing SIPs (Systematic Investment Plans) will not be affected, but restrictions may apply to new investments and registrations.
- Physical Gold: Purchasing gold coins or bars attracts a 3% GST. Buying jewellery involves additional costs, such as making charges and GST. These extra expenses are generally not recovered upon resale. Therefore, when purchasing physical gold, it is essential to consider the total cost rather than just the price of the gold itself.
- Sovereign Gold Bonds (SGB): The government has stopped issuing new Sovereign Gold Bonds. However, existing bonds can still be purchased from other investors in the secondary market.
The decline in gold and silver prices ahead of the festive season is significant for buyers. Nevertheless, any decision to purchase or invest should be made after carefully considering one’s own needs and the available options.
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