Silver rate today: After witnessing a record rally, the white metal took a U-turn, falling over 8% or ₹21,000 per kg, after reaching a peak of ₹254,174 per kg, on Monday, December 29.
Silver rates witnessed a bloodbath after a non-stop rally as investors rushed to book profits. On MCX, Silver March futures settled at ₹2,23,900 per kg, fell by ₹30,274 from the record levels.
Silver’s rally in India mirrored the sharp upswing in global markets. Prices of the white metal crossed the $80 mark earlier today for the first time, but later eased as traders locked in profits after a steep surge of more than 180%.
Why Silver prices gained momentum?
Sugandha Sachdeva, Founder of SS WealthStreet, believes that the recent surge in silver prices marks a structural inflection point, not a speculative spike.
“During the Christmas holiday period, when Western benchmark markets such as COMEX and LBMA were closed, silver prices continued to trade actively in Asia. The result was a striking divergence: physical silver in Shanghai surged close to USD 82, while COMEX prices were trading significantly lower,” she said.
Sachdeva further explained that a sudden significant rise in silver prices highlights a growing disconnect between paper-based price discovery and the real conditions of physical supply and demand.
“When Western markets went offline, the physical market spoke clearly, silver is scarce, inventories are depleted, and buyers are willing to pay a substantial premium for immediate delivery. Silver’s rally is not a trade. It is a structural repricing driven by scarcity, necessity, and monetary reality,” she added.
Meanwhile, Anuj Gupta, Director of Ya Wealth, said that the primary driver behind the rise in silver prices lies in structural shifts that have allowed the white metal to rival gold as a safe-haven asset.
“The combination of technology, physics and geopolitics causes this structural change. Recently, Samsung has declared that it is moving towards the mass production of solid-state batteries, which will replace lithium-ion batteries. The new battery will be significantly better than the existing one, as it will take only 10 minutes to charge your cell phone’s battery fully, and solid-state batteries are expected to last for nearly two decades. Silver is a core raw material for making these solid-state batteries. Apart from this, there is also demand for silver in the EV, solar, and other industries. This is expected to create a huge gap in the demand-supply constraint,” Gupta said.
Why silver prices fell after record rally?
Silver was the standout mover overnight, plunging 8.7% in its sharpest single-day drop since August 2020, correcting some of the excess in a parabolic rally that had appeared increasingly detached from reality.
Tony Sycamore, analyst at IG, was quoted as saying by Bloomberg, that the gap higher in silver prices at Monday’s open was likely to do with stop losses, price action and panic buying as well as the Chicago Mercantile Exchange raising margin requirements.
‘This is a generational bubble. And I’m not going to say that the bubble burst overnight, but… if you see a sell-off like you do, it’s going to temper at least some of the enthusiasm in those markets over the coming session. So for me, it’s a much needed cooling-off,” Sycamore told Bloomberg.
Another key driving factors behind the bloodbath was discussions between US President Donald Trump and Ukrainian President Volodymyr Zelensky regarding a potential peace deal.
On Sunday, Trump said that he and Zelensky were “getting much closer, possibly very close” to reaching an agreement to end the war in Ukraine. The easing of geopolitical tensions reduced safe-haven demand across the bullion market, triggering significant profit-taking.
Where are Silver prices headed in the near-term?
According to Ponmudi R, CEO of Enrich Money, silver continues to outperform across the precious metals space, surging to fresh record highs around $79–80/oz on COMEX (Mar 2026 contract).
The Enrich Money expert further explained that Silver is currently delivering one of its strongest annual performances in decades, significantly outperforming gold amid favourable fundamentals and elevated risk premiums.
“Silver prices have given a clean breakout above ₹2,32,000 to ₹2,35,000 range, which has triggered the next major leg of the rally, with upside targets opening towards the ₹2,40,000 to ₹2,50,000 per kg range,” said Ponmudi R of Enrich Money,” R added.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
