Silver prices plunge on diversion of funds towards equities

Silver prices plunged by Rs 270 to Rs 32,400 per kg in the national capital today, as stockists and investors off-loaded their positions to invest into surging equity markets. 

Gold prices also dipped on lack of buying at existing higher levels amid weakening global tend. Market analysts said investors sold silver to shift funds into equity stocks for quick gains.

Both the stock markets, Bombay Stock Exchange and National Stock Exchange indices climbed to 32-month high levels of 20,000 and 6,000 points, respectively.

The gold prices eased as retail customers and jewellers postponed their decision to buy for the festival season at existing record-high levels, they said.

The gold of 99.9 and 99.5 per cent purity fell by Rs 5 each to Rs 19,345 and Rs 19,245 per ten grams respectively. Sovereign price was unchanged at Rs 15,200 per piece of eight grams.

Silver ready tumbled by Rs 270 to Rs 32,400 per kg and weekly-based delivery by Rs 265 to Rs 31,995 per kg. However, silver coins continued to be at the previous levels of Rs 35,100 for buying and Rs 35,200 for selling of 100 pieces.