Indian Silver Prices Crash Over 40% After Festive Season

Silver prices in India have crashed by over 40% from their January peak of Rs. 4 lakh per kg, falling to Rs. 2.35 lakh per kg in Mumbai's spot market.

The sharp correction did not bring investors back to the market, as weak investment demand is leaving refiners and bullion dealers with rising inventories ahead of the festive season.

Chirag Sheth, global business head at Public Gold Bullion (SG) Pte, said that international prices are unlikely to exceed USD 100 per troy ounce in the near term unless the US-Iran war ends, while describing silver prices as undervalued.

The US-Iran war also affected industries that use silver, including the solar, semiconductor, and EV sectors.