The tremendous rise of silver has suddenly stopped. After giving returns of about 170% in 2025 and rising further to 74% in January 2026, there has now been a sharp decline. Now the price of silver has fallen below the closing level of 2025 (falling from Rs 2.41 lakh to around Rs 2.38 lakh). This sudden fall has shocked both small and big investors, due to which people have started withdrawing money to reduce the risk.
Big fall of 46% in three months
Silver futures for May have fallen from their record high of Rs 4.39 lakh per kg to below Rs 2.40 lakh in just three months. That means there has been a huge fall of about Rs 2 lakh, which shows sharp selling in the market.
Three big reasons for decline
West Asia crisis:Generally, gold and silver are considered safe investments in times of crisis, but this time the opposite happened. Prices also fell amid rising tension and war as investors sold to raise cash.
Strong US Dollar:Due to strengthening of dollar, silver starts looking expensive, due to which its demand decreases. Besides, the tough stance of the US Federal Reserve also increased the pressure.
Profit Booking:After the sharp rise, traders started taking profits, due to which the prices fell further.
Would it be a good idea to buy now?
According to the report, despite the fall, the outlook for silver in the long term is still positive. Its demand in the industry is continuously increasing, which is more than 60% of the total consumption. There is also a shortage of supply. There is shortage of silver in the market for 5 consecutive years and now the situation is the same for the sixth year.
Expert advice
Experts say that instead of making big purchases all at once, it would be better to make staggered investments. Especially when prices are around strong support levels.
technical perspective
Silver is currently trading around Rs 2,45,200 on MCX. There is resistance at Rs 2,46,000 and if this level is crossed, the price can go up to Rs 2,47,0002,48,000 lakh. The decline may be sharp, but in the long run the story of silver is not over yet. You may get a chance to invest wisely.
