Silver Prices Plummet 40% as Investors Stay Away Amid US-Iran Conflict

Silver prices have plummeted by over 40% from their January peak of Rs 4 lakh per kg, but investors are staying away. Traders and analysts point to a slowdown in investment demand across silver exchange-traded funds (ETFs), bars, and coins.

According to Chirag Sheth, global business head of Public Gold Bullion (SG) Pte, 'Internationally, prices are unlikely to cross $100 per troy ounce immediately unless the US-Iran war comes to an end.'

The ongoing conflict has added to the negative sentiment surrounding silver. Carsten Menke, head of Next Generation Research at Julius Baer, said, 'The market is still digesting the aftermath of the speculation-driven frenzy, and this may be prompting investors to stay away after many of them incurred significant losses.'

Indian bullion dealers and refiners are facing a problem with massive stockpiling of silver. They have placed orders for around 2,000 tonnes of silver, which is currently in transit. This has raised concerns over a further build-up in stocks.