On August 14, silver prices fell to Rs 67,220 per kg. The precious metal is under intense selling pressure on the near side recognizing the weakness of gold.
White metal was down 6,989 or 9.42 percent for the week but was up 43.80 percent in 2020.
Silver Holdings fell from 217 tonnes to 17,855.07 tonnes in the Eichers ETF.
In the futures market, silver touched a high of Rs 70,939 intraday for September delivery and Rs 66,202 per kg on the MCX. So far, in the current series, the precious metal has touched Rs 41,558 and the highest is Rs 77,949.
Silver delivery for the September contract declined by 3,857 or 5.43 percent to settle at Rs 67,220 per kg with a business turnover of 9,865 lots. Turnover for the December contract fell by Rs 4,069 or 5.53 percent to Rs 69,529 per kg on a turnover of Rs 5,462.
During the day, August and September contracts were valued at Rs 9,231.52 crore and Rs 498.24 crore, respectively.
The spot gold/silver ratio is currently 73.58 to 1, which is the amount of silver needed to buy one ounce of gold.
Sumeet Bagadia, Executive Director, Choice Broking, said, “We expect MCX Silver prices to trade bullish in the coming month as ETF investments become more volatile in global markets.”
“Moreover, silver prices to also find support as the industrial demand is expected to find further recoveries and global markets are expected to resume business activities,” he said.
The precious metal settled with a loss of 4.27 percent quoting at $26.53 an ounce in New York.