Silver ETFs plunge as metal tumbles post-record high
Gold and silver prices declined on Tuesday as traders secured gains following record peaks reached one day earlier. Indian jewellery purchases rose 35 to 40 percent for Dhanteras despite the market retreat. Silver exchange-traded funds suffered steep losses after generating returns near 70 percent over 12 months.
Global silver prices had climbed above 50 dollars per ounce in mid-October before retreating as trade concerns eased. Indian silver fell 7 percent on Oct. 20 from 1,71,275 rupees per kilogram to 1,60,100 rupees. Exchange-traded funds tracking silver dropped as much as 7 percent that day as demand cooled after months of investor interest.
International gold softened 0.3 percent to 4,340.29 dollars per ounce after reaching an all-time high of 4,381.21 dollars Monday. Traders took profits while anticipating additional Federal Reserve rate cuts. December futures contracts eased 0.1 percent to 4,356.40 dollars.
Indian retailers sold 50 to 60 tonnes of jewellery over two days of Dhanteras festivities worth 85 crore rupees. Sales volume matched last year, but total value jumped because of higher metal prices. Silver purchases nearly doubled as the weekend holiday period generated strong consumer activity. Industry officials expect the five-day celebration to produce total jewellery sales between 100 and 120 tonnes valued at 1 lakh crore to 1.35 lakh crore rupees.
