India's Silver Prices Plummet Amid Supply Glut and Weak Industrial Demand
Silver prices in India have plummeted by over 40% from their January highs of ₹4 lakh per kilogram, currently trading near ₹2.35 lakh.
The sharp decline has halted the strong investment interest that the asset class had attracted earlier this year, leaving many investors who entered at higher price levels nursing losses.
One critical issue facing the domestic bullion market is a potential supply glut, with approximately 2,000 tonnes of silver currently in transit, representing a significant portion of India's total market demand.
The price weakness is also linked to a softening in industrial consumption, particularly in sectors such as solar energy, semiconductors, and electric vehicles, which are being impacted by global geopolitical instability.