Silver prices, which had been steadily rising due to strong demand from industrial sectors such as 5G technology, electric vehicles, and solar power, witnessed a sudden decline this week. The metal’s popularity surged as investors saw their wealth grow from silver holdings, prompting increased online and physical purchases. Silver had even surpassed the market value of major global companies, with its market capitalization estimated at around ₹380 lakh crore, second only to gold worldwide.
However, this upward momentum was disrupted recently. On the Multi Commodity Exchange, March contract silver prices fell sharply by ₹21,000 per kilogram within an hour. Intraday, the metal touched a high of ₹2,54,174 per kilogram before dropping to ₹2,33,120. Spot market prices also reflected the decline, with Hyderabad bullion trading silver at ₹2.39 lakh per kilogram by 3 PM, down from over ₹2.50 lakh earlier. Analysts attribute the fall primarily to profit booking near record highs, though global demand for silver continues to remain robust. Notably, silver prices have increased by 181% so far this year and are currently trading 89% above the 200-day moving average.
Global factors also contributed to the sudden drop. The Chicago Mercantile Exchange raised margins for March 2026 futures contracts from $20,000 to $25,000, prompting risk-averse traders to retreat and intensifying selling pressure. Additionally, statements from US President Donald Trump and Ukrainian President Volodymyr Zelensky regarding the potential resolution of the Russia-Ukraine conflict fueled market uncertainties, further weighing on silver prices.
Meanwhile, Indian equity markets closed in the red for the fourth consecutive day. Selling pressure was seen across IT, real estate, pharma, and auto stocks. With foreign investors largely selling off holdings and no significant cues to drive the indices upward, market sentiment remained subdued. Experts also noted that year-end caution among investors contributed to the muted enthusiasm.