Blogs

✨ The shimmer just got sharper.
In the past few weeks, India’s bullion market has seen breathtaking highs — and equally stunning falls.
Both Gold and Silver touched record levels, only to retreat dramatically within days.
For investors, jewellers, and advisors alike, this roller-coaster ride demands attention, not anxiety.

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📈 The Meteoric Rise – Then the Swift Fall

🪙 Silver’s Wild Ride

Just days ago, silver dazzled investors by crossing the ₹2,00,000/kg mark in some Indian markets — a historic peak! 🌟
But right after Dhanteras, prices plunged by nearly ₹25,000/kg (around 15%) within a week.

• On 17 Oct 2025, silver on MCX hovered near ₹1,71,200/kg.
• By 23 Oct 2025, it crashed to ₹1,45,500/kg in Ahmedabad.
• As of 27–29 Oct 2025, silver is trading around ₹1,50,900/kg nationally, and ₹1,45,770/kg in Ahmedabad.

📊 That’s a sharp correction — yet silver remains 40% higher year-on-year due to industrial demand.

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🪩 Gold’s Glitter Loses a Bit of Shine

Gold wasn’t spared either. After touching an all-time high of ₹1,32,294 per 10 g, it too pulled back.

• By 21 Oct, MCX gold dipped to ₹1,28,000 per 10 g.
• On 27 Oct, it slipped further to ₹1,22,160 per 10 g in Ahmedabad.
• As of 29 Oct 2025, 24-carat gold is quoted around ₹12,081 per gram (₹1,20,810 per 10 g) nationwide.

💬 In simple terms: Gold remains strong, but volatility has returned to the bullion space.

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🌍 What’s Behind These Sharp Swings?

🚀 The Earlier Surge – Fuelled by Festivity & Fear

• 💵 Weak US Dollar & Fed rate-cut hopes encouraged safe-haven inflows.
• ☀️ Silver’s industrial demand (solar panels, EVs, electronics) squeezed global supply.
• 🎊 Dhanteras–Diwali demand boosted domestic jewellery and bullion buying.
• 📈 Inflation hedging made metals attractive amid global uncertainty.

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💥 The Sudden Fall – Profit Booking & Macro Cool-Off

• 💰 Investors booked profits after sharp rallies, especially in silver.
• ⚙️ Improved supply in physical markets eased earlier shortages.
• 💹 Stronger US Dollar Index (DXY) capped further upside.
• 💎 Jewellery demand softened post-festive week.
• 📉 MCX premiums narrowed, adjusting to international benchmarks.

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🧭 What Should You Watch Now?

🔹 Gold–Silver Ratio: Currently around 80:1, suggesting silver still has long-term catch-up potential but higher short-term risk.
🔹 Support Levels:
 - Gold → ₹1,20,000 – ₹1,25,000 per 10 g
 - Silver → ₹1,40,000 – ₹1,50,000 per kg
🔹 Next Global Cues:
 - US Fed meeting outcomes
 - INR–USD movement
 - Global inflation trajectory
🔹 Domestic Triggers:
 - Import duty changes
 - Wedding-season demand revival
 - GST & valuation implications for jewellers

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🧾 What It Means for You

💼 For Investors

This correction is a healthy pause, not a collapse.
👉 Re-evaluate your gold-silver portfolio, consider staggered buying, and keep your risk-return profile in focus.

💍 For Jewellery Buyers

Prices are more realistic again! If you skipped festive buying due to record highs, this might be your moment — though volatility remains.

🏭 For Businesses & Jewellers

• Review inventory valuations post-price fall.
• Watch city-wise differential pricing and reduced premiums.
• Manage inventory prudently — avoid panic stock adjustments.

🧮 For Tax & Audit Professionals

Sudden market swings mean you should revisit:

• Audit valuations of bullion inventories
• Disclosure of precious-metal assets in financial statements
• Capital gains/losses for individual investors
• GST/FEMA implications for bullion importers

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⚠️ Key Risks to Keep in Mind

• 🔻 A stronger USD could pressure both gold & silver further.
• 📦 Premium fluctuations in the physical market may persist.
• 📉 High-cost holdings might face temporary valuation losses.
• 💼 Accounting adjustments may be required for firms with bullion exposure.

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🪄 Weekend Action Plan

✅ Re-mark bullion holdings at current market value.
✅ Advise clients on volatility and inventory control.
✅ Track USD trends and global central-bank cues.
✅ Prepare revised valuation sheets for FY 2025-26 audits.
✅ Watch for upcoming policy updates on gold imports and duty.

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🧠 Final Thoughts

Gold and silver remain the classic hedges — but short-term corrections are reminders that even safe-havens swing.
This phase is not about fear, but financial finesse.
As a seasoned advisor, you know the drill: stay objective, guide clients calmly, and see volatility as an ally for strategic decision-making.

📅 Before Monday’s trading session, pause and assess:
Is your bullion strategy shining bright — or due for a polish?