Silver ready .999 opened sharply lower at Rs 7200 and declined further to close at Rs 7160, showing a heavy fall of Rs 215 from the last close of Rs 7375. Raw silver .916 crashed by Rs 230 to Rs 7040, while tenderable silver dropped steeply to Rs 7165 from Rs 7380.

According to the Bombay Bullion Association (BBA) president Makhanlal Damani, the weak international market affected prices in India as the price trend of the precious metals is completely dependent upon the international prices. BBA vice-president Arun Mehta said political instability and economic crisis in Russia and weakening of Australian currency affected the Indian market.After the adoption of liberalisation policy, the bullion market is dealing with the international markets. About the demand in the domestic market, Mehta said if prices drifted further lower, the demand may increase and the present situation is that the demand and supply is squarish.However, standard gold, after yesterday's sharp fall of Rs 100, held steady at Rs 4050 due to slight improvement in the global prices.

22-carat gold at Rs 3745 and 10-tola gold bar .999 at Rs 47500 also remained unchanged from the last close.

The sudden crash in gold prices has given the right opportunity to grab the yellow metal at a price as low as Rs 4050 per ten gram in the metropolis, according to traders. ``The sudden fall in gold prices at this time is good for consumers as August to October is the season of festivals like Ganesh Chaturthi, Dasehara and Diwali when people tend to buy more gold. Normally during the festival season the prices are higher,'' a jeweller said.

Last year the standard gold was pegged around Rs 4520 per ten gram as compared to Rs 4050 today, which showed a steep fall of Rs 220 per ten gram, Damani said.

The lowest level in gold prices during the year was seen on January 23 last when it plunged to Rs 3945 per ten gram, but thereafter, it had gained strength to touch the year's highest level of Rs 4300 per ten gram on June 30.

The record fall in gold prices in the international market which fell below the 19-and-half year low level of $ 276 per ounce in Hong Kong and $ 271.60 per ounce at Comex on Friday caused by heavy selling by Australian producers.