Silver rose by more than Rs 12,500 on Tuesday and created another new record for silver on Wednesday. Till now the beginning of the day for silver was largely fine. But what happened after that is surprising. The special thing is that in the futures market of the country, silver has fallen to Rs 8000 till now after its record high. The effect of this fall in silver is visible only in the futures market of the country. In fact, it is being seen in ETFs also. All ETFs have reached their lowest level of the day. At the same time, due to fall in silver prices in the stock market, a decline is being seen in the shares of Hindustan Zinc. Let us also tell you how this huge fall of silver is being seen in MCX, stock market and even ETFs.
Great fall in silver prices
On the Multi Commodity Exchange of India (MCX), the futures price of silver ending in March fell by about 3 percent and the price reached Rs 2,51,729 per kg. This fall came when the price of silver had touched a new life time high of Rs 2,59,692 per kg in the early part of the day. The futures price ending in May fell by 2.5 percent and reached Rs 2,58,566 per kg.
It also wiped out its initial gains after touching a new high. At the same time, the futures price ending in July fell by more than 2 percent and reached Rs 2,65,028 per kg. These futures prices have fallen by about Rs 8,000 per kg from their highest level in the early part of the day.
At the same time, the price of spot silver in the Comex market fell by 3.5 percent and reached $ 78.43 an ounce, which is much below the all-time high of $ 83.62 recorded on December 29. The sharp decline could be due to profit-booking, while a stronger dollar negatively impacted the precious metals market ahead of key US employment data to be released this week.
Silver ETF also declined
A fall in silver prices was also seen in Silver Exchange Traded Fund (ETF). 360 One Silver ETF fell 2 per cent, while Axis Silver ETF, Tata Silver ETF, SBI Silver ETF and HDFC Silver ETF registered marginal gains, ending the day’s early gains. Nippon India Silver ETF, UTI Silver ETF, ICICI Prudential Silver ETF, Motilal Oswal Silver ETF, Zerodha Silver ETF and other ETFs rose over 0.5 per cent, erasing the day’s early gains.
Hindustan Zinc shares also decreased
Shares of Hindustan Zinc have increased by about 3 percent in the last five days and by more than 29 percent in the last one month. There has been a 45 percent jump in the share price in the last six months. If we talk about Wednesday, there was a decline of about two percent in the shares of Hindustan Zinc on Sensex and the share came to the lower level of the day at Rs 630.25. However, on December 29, the company’s shares had reached a 52-week high. Since then, the company’s shares have seen a decline of about 4 percent.
What should investors do?
Harshal Dasani, Business Head, INVAset PMS, said in the Money Control report that looking to 2026, the medium-term outlook remains especially positive for silver. He said that industrial demand related to electronics, solar energy and electrification remains strong, while the supply shortage has persisted for many years, resulting in losses in the market. Dasani said silver in particular had become a momentum trade in 2025 with a sharp rise throughout the year, making it vulnerable to profit-booking and leveraged unwinds as sentiment changed. Gold has also given extraordinary gains in the last year, so even the usual corrections after such a strong rally appear serious. According to experts, in the near future, the direction of prices will continue to be influenced by the US dollar and real interest rates.