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Silver Prices Crash By Half From Peak In 2026: Factors Behind Metal’s Dramatic Fall
Sentiment: NeutralHigh Priority
What Happened?
Silver prices have dropped over 53% from a peak of nearly $117 per ounce in January 2026, trading just above $54 per ounce by late October. Factors include rising US interest rates and inflation driven by crude oil prices.
Key points
- Silver prices fell from a record high of nearly $117 per ounce on January 28, 2026.
- As of October 23, 2026, silver traded just above $54 per ounce.
- On the Multi Commodity Exchange, silver dropped from around Rs 3.85 lakh per kg to approximately Rs 1.91 lakh per kg.
- Investor interest in silver ETFs increased, attracting Rs 1,974 crore in September 2026, up 55% from August.
- Rising crude oil prices have fueled inflation and expectations of prolonged high US interest rates.
- India imports over 80% of its silver, making domestic prices sensitive to international rates.
Key insights
- The decline in silver prices may lead to reduced investment in silver-related assets.
- High US interest rates could shift investor focus to interest-bearing assets, further impacting silver demand.
- The easing of domestic supply constraints in India could stabilize local silver prices.
Why it matters
The significant drop in silver prices could impact investors and industries reliant on silver.
Source
Times Now
