Gold and silver coins dip

New Delhi: Silver coins suffered the biggest single day plunge of Rs 7,000 to Rs 58,000 per 100 pieces here today on fresh arrivals for the festival season in tandem with a steep fall in the industrial metal`s prices. Gold also dropped by Rs 835 to Rs 26,440 per 10 grams, 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 Dhanteras and Diwali festivals. Stockiest and retailers would have to shell-out Rs 57,000 for 100 pieces of silver coins.

Traders said sentiment turned bearish after gold fell from USD 1,664 to USD 1,608.20 an ounce and silver lost 3.2 per cent to USD 29.11 an ounce in London, as investors sold the metals to cover losses in other assets. Besides, 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 10 grams, respectively. Sovereign lost Rs 200 to Rs 21,800 per piece of eight grams. Similarly, silver ready plummeted by Rs 2,500 to Rs 50,800 per kg and weekly-based delivery lost Rs 2,570 to Rs 50,075 per kg.