While on one hand the rising prices of silver made investors rich, on the other hand 44 businessmen of the country went bankrupt due to silver. There is news from Rajkot. In which it is said that the rise in silver prices across the world has given rise to a crisis, due to which 44 traders of the city have declared themselves bankrupt. The report said that these companies failed to pay the total outstanding liabilities of Rs 3,500 crore due to which they had to declare themselves bankrupt.
Rising prices of silver become a problem
The crisis occurred when Rajkot traders were expecting stable silver prices but got stuck in a short squeeze, taking prices above Rs 1.25 lakh per kg. The volatility in silver prices trapped many traders who had short sold silver in anticipation of price stability after a stellar performance in 2025. But as the market rose further, the difference between the selling price and the market price (locally called vlan) became so large that it became impossible to handle.
44 traders bankrupt
Silver traders called an emergency meeting on Saturday night in which 44 traders reportedly admitted their inability to repay the loan and surrendered in the face of the market collapse. The impact of this shock has also spread throughout the trade network, reaching cities like Ahmedabad, Indore and even Dubai, where all related liabilities are now being accounted for. The report said traders were confident that the price would not cross the Rs 1.25 lakh mark and continued selling. When prices crossed that limit, the financial burden increased significantly. Some traders reportedly closed their shops and fled the market.
Big fall in silver on MCX
A big fall is being seen in the prices of silver on the country’s futures market Multi Commodity Exchange. At 3:15 pm, the price of silver is trading at Rs 2,36,990 with a fall of Rs 14,022. Whereas during the trading session, the price of silver fell by Rs 18,784 and came down to Rs 2,32,228. The special thing is that in the last three trading days, the price of silver has seen a fall of more than Rs 22 thousand. Whereas a day ago the price of silver had crossed the level of Rs 2.50 lakh.