Silver’s impressive bull run has come to an abrupt stop, leaving investors grappling with a dramatic shift in the momentum of the precious metal. After emerging as one of 2025’s standout performers, delivering gains of up to 170 per cent, and continuing that surge with a further 74 per cent jump in January 2026, the precious metal has sharply reversed course. Currently trading below its 2025 closing level of Rs 2.38 lakh (down from Rs 2.41 lakh), silver has erased all of its gains for the year.
The speed of the downturn has surprised both seasoned and new investors, prompting many to reduce exposure and move toward safer assets.
What has truly rattled the market is the magnitude and pace of the fall. Maysilverfutures have dropped nearly 46 per cent from their all-time high of Rs 4.39 lakh per kilogram to below Rs 2.40 lakh in just three months. In absolute terms, this marks a steep decline of Rs 2,00,554, highlighting the intensity of the selloff.
This rapid erosion has triggered a wave of caution, as market participants reassess their positions amid heightened volatility.
Several factors have contributed to pushing silver lower. Geopolitical tensions in West Asia involving the US-Israel-Iran initially sparked a risk-off sentiment across global markets. While gold and silver are traditionally seen as safe-haven assets, this time both metals have faced selling pressure.
Rising crude oil prices and escalating uncertainty led investors to increase cash holdings and unwind leveraged bets. In such environments, even defensive assets can be liquidated to meet margin requirements or rebalance portfolios. At the same time, a stronger US dollar combined with a hawkish Federal Reserve stance has dampened demand for non-yielding assets like silver. Since the metal is priced in dollars, its appreciation makes it costlier for buyers using other currencies, weighing on both investment and physical demand.
Profit-booking has also played a key role. After an extended rally, traders chose to lock in gains amid rising volatility, accelerating the downward trend.
Should Investors Consider Buying Now?
“We reiterate investing in silver over supportive fundamentals and market uncertainties. Any decline in prices over a dollar rally or ease in tensions provides an opportunity to accumulate or invest in silver,” Tata Mutual Fund said in a report.
The report further noted that such corrections are typical after a prolonged rally and do not necessarily undermine the long-term outlook. Silver’s underlying fundamentals remain intact despite the recent pullback. A significant factor supporting this view is robust industrial demand, which accounts for over 60 per cent of total consumption. Expanding use across industries, along with steady investment demand from China, is expected to sustain prices over the medium to long term.
Source: India Latest News, Breaking News Today, Top News Headlines | Times Now
