Plunge in precious metals hits recent bullion ETF buyers

Those who bought gold and silver during the festive period in the past few days have been left with losses as prices fell after a mammoth rally.

- Shrushti Vaidya, Ram Sahgal & Apoorva Ajith

Most gold buying was done by institutional players.

(AP)

Experts, however, suggest continuing to add the safe-haven assets in a staggered manner, highlighting that the demand is driven by institutional investors and central banks.

Since hitting its 14 October high, domestic spot 999 silver fell 15% to ₹52,501 per kg on 22 October, according to the India Bullion and Jewellers Association (IBJA).

Silver exchange-traded funds (ETFs) have suffered more because they were trading at a higher premium. The two biggest silver ETFS by assets, Nippon Silver Bees and ICICI Prudential Silver ETF, have fallen 17% and 16%, respectively, since 14 October.

While Spot 995 gold has fallen 1.7% ₹123,411 per 10g during the period, Nippon Gold Bees ETF has declined 2.3%. ETF prices have been calculated till 21 October as the markets were closed on 22 October.