Silver prices crash 54% from Jan record highs: Gold and silver prices have been on a steep decline amid rising energy prices, the West Asia crisis and mounting inflation concerns, which have strengthened expectations of further interest rate hikes. While both precious metals have witnessed significant losses, silver has been hit particularly hard, plunging nearly 54 per cent from its January peak of Rs 4,20,048 to Rs 1,92,800 per kg, while international prices corrected 56.04 per cent from $121.64 to $53.47.
Silver, often referred to as “Poor Man’s Gold” and the “Devil’s Metal”, has witnessed extreme price volatility in 2026. Interestingly, the US-Iran conflict has reversed traditional safe-haven behaviour. With Brent crude trading above $110, rising inflation risks have increased expectations of US Fed rate hikes, pressuring bullion. At the same time, weakness in equity markets and a 37 per cent drop in UAE property transaction volumes in early March point to growing investor caution and mounting liquidity pressures.
However, silver’s structural fundamentals remain supportive, with nearly 50 per cent of demand linked to industrial applications and persistent supply deficits. We believe this correction offers gradual accumulation opportunities, with $50 providing crucial support. As geopolitical pressures ease, silver could potentially recover towards $90–100 by next Dhanteras, although volatility may persist.
Silver prices crash 54% from January record high of Rs 4.20 lakh per Kg
Silver prices have plunged in the domestic market after MCX silver futures hit a record high of Rs 4.20 lakh per kg in January 2026. Prices fell to Rs 1,94,170 per kg on October 23. On Monday, October 26, December-delivery silver futures were trading at Rs 1,95,500 per kg, marking a decline of approximately 54 per cent from the January peak.
Silver prices crash 54% from Jan record high: Should you buy now or wait for further correction?
With Silver crashing nearly 54 per cent from its January peak, investors are wondering whether they should buy silver before Diwali or wait for further correction. Let’s check out what experts’ views are on the same.
‘Investors should not rush into buying silver at this time’: Anuj Gupta
According to SEBI-registered research analyst Anuj Gupta, investors should not rush into buying silver at this time. He believes prices may fall further. Experts say silver could reach levels of Rs 1.70 lakh to Rs 1.80 lakh per kilogram. A crucial reason behind this is concerns about silver demand. Silver is not only used for jewellery and investment purposes, but is also needed in sectors such as solar panels and electronic chips. According to Anuj Gupta, weak demand for solar panels and AI chips could put pressure on prices.
‘Buy small amounts in instalments rather than investing the entire amount at once’: Ajay Kedia
Ajay Kedia, director of Kedia Commodities, has a different opinion on the silver crash. He believes that due to tensions in the Middle East, crude oil remains high, so inflation could rise at any time. If the US Federal Reserve raises interest rates, people may withdraw money from gold and silver.
However, around half of silver consumption comes from industrial and manufacturing applications, while supply shortages in the market could provide support to prices in the future.
Therefore, his advice is to buy small amounts in instalments rather than investing the entire amount at once. He considers $50 per ounce in the international market to be a strong level. He estimates that if tensions ease, silver could reach $90 to $100 per ounce by next Dhanteras. However, until then, prices will continue to fluctuate.
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)