Silver becomes cheaper by ₹28,000 per kg:Futures market price falls to ₹2.40 lakh per kg; 10 grams gold become 3,000 cheaper

After two consecutive days of gains in the gold and silver market, there is a decline today on February 5. In the futures market (MCX), silver prices have fallen by around Rs 28,000 (11%). The price of 1 kg silver has come down to Rs 2.40 lakh. Gold prices have also fallen by around Rs 3,000 (2%). 10 grams of gold is at Rs 1.50 lakh. Earlier, between January 29 and February 2, silver prices had decreased by Rs 1.60 lakh. While gold prices had decreased by Rs 26,000. The bullion market prices will be released at 12 noon. Why are prices different in MCX and bullion market? MCX: Multi Commodity Exchange is an online platform where gold and silver trading takes place. Like the stock market, bids are placed every second causing prices to fluctuate continuously. Bullion: This is the place where you buy physical gold and silver. The cost of bringing, carrying, and storing physical gold is associated with it. 2 Reasons for Gold-Silver Price Drop Profit Booking: Gold and silver prices had reached record levels in recent days, after which investors booked profits on a large scale. Decrease in Physical Demand: Physical demand weakened after all-time highs, along with increased concerns about industrial usage. Pressure on Gold-Silver Prices Due to Margin Increase SEBI registered commodity expert Anuj Gupta said that the Chicago Mercantile Exchange (CME) has increased margin money on gold and silver after copper. The margin on gold has been increased from 6% to 8%. Similarly, for silver it has been increased from 11% to 15%. With the increase in margin, prices are expected to remain under pressure. When someone makes a large trade in the commodity market, they don’t have to pay the full amount immediately. They have to deposit a small portion of the total price as security, which is called ‘margin’. An increase in margin means traders will now have to invest more money. There are many traders who have already made purchases. When margin increases, the exchange demands extra money from them. If they don’t have money immediately, they have to sell their gold or silver. When many people sell together, prices start falling. Keep these 2 things in mind when buying gold from jewelers 1. Buy Certified Gold Only: Always buy certified gold with Bureau of Indian Standards (BIS) hallmark. This number can be alphanumeric like AZ4524. Hallmarking indicates how many carats the gold is. 2. Cross-check Prices: Cross-check the correct weight of gold and its price on the day of purchase from multiple sources (like India Bullion and Jewellers Association website). Gold rates vary based on 24 carat, 22 carat and 18 carat. 4 Ways to Identify Genuine Silver