Silver Prices Plummet Over 40% in India Amid Weak Investment Demand

Silver prices in India have plummeted by over 40% from their January peak of Rs. 4 lakh per kg, but this sharp correction has not enticed investors to return to the market.

The spot market price in Mumbai was Rs. 2.35 lakh per kg earlier this week, with a notable decline in investment demand visible across silver ETFs, bars, and coins.

Investors who purchased silver at higher prices are now sitting on significant losses, making them hesitant to make new purchases despite the steep price drop.

Chirag Sheth, global business head at Public Gold Bullion (SG) Pte, stated that investment demand for silver ETFs, bars, and coins has declined. He also predicted that international prices are unlikely to exceed USD 100 per troy ounce in the near term unless the US-Iran war ends.

The US-Iran conflict is affecting industries that use silver, such as solar, semiconductor, and EV sectors, which further contributes to the decline in demand.