Silver coins log biggest single-day fall

Silver coins suffered the biggest single-day plunge of Rs 7,000 to Rs 58,000 per 100 pieces here on Wednesday on fresh arrivals for the festival season, in line with a steep fall in the industrial metal's prices.

Gold also dropped by Rs 835 to Rs 26,440 per 10g, while silver shed Rs 2,500 to Rs 50,800 per kg on subdued demand.

Market analysts said the steep dip in silver coins is surprising, as their demand normally picks-up at this time of the year, as they are used as gifts as well as pooja ceremonies during the Dhanteras and Diwali festivals.

Stockists and retailers would have to shell-out Rs 57,000 for 100 pieces of silver coins. Also, sluggish demand at prevailing higher levels also influenced the trading.

Back home, gold of 99.9 and 99.5 per cent purity plunged by Rs 835 each to Rs 26,440 and Rs 26,300 per 10g, respectively. Sovereign lost Rs 200 to Rs 21,800 per piece of 8g. Similarly, silver ready plummeted by Rs 2,500 to Rs 50,800 a kg and weekly-based delivery lost Rs 2,570 to Rs 50,075 a kg.

Gold fell more than one per cent on Wednesday, extending the previous day’s hefty losses, as rising equities diverted some interest from the precious metal and as investors remained wary of buying into the market after its recent volatility.

In London, spot gold was down 0.9 per cent at $1,605.29 an ounce at 1101 GMT. It shed two per cent of its value late on Tuesday to dip temporarily below $1,600 an ounce, as investors sold stocks of the metal to cover losses on other markets as shares slid. Silver also fell five per cent to a session low at $28.40 an ounce. It was later at $28.74, down 3.9 per cent.