Silver is sliding, and fast. In India, prices have crashed nearly 50% from the all-time high of Rs 3,84,632 per kg, hit on January 29.
On Friday, October 23, the December 2026 silver futures contract on MCX slipped below Rs 2 lakh per kg. It fell 1.72% to trade at Rs 1,96,170, down Rs 3,429 from the previous close. Fresh lows, and falling demand, are keeping the pressure on.
On MCX, silver spot prices closed at Rs 2,00,853 per kg, and slipped by over 3% on October 23 to trade around Rs 1,94,383. Meanwhile, most Silver ETFs are also down over 3% during the trading hours on Friday.
The global picture looks no better. In the international market, spot silver traded at about $54 per ounce. A day earlier, COMEX silver futures collapsed 4.60% to $54.7. That is their lowest settlement since November 2025. The metal is now down more than 21% year-to-date. It also sits about 55% below its January record high of $121.
What is dragging silver down?
One big reason is the deepening selloff in technology and artificial intelligence stocks. Traders are selling precious metals to cover losses in other assets. The equity downturn grew worse this week after Meta Platforms’ plans to increase capital expenditure. This reignited concerns that tech companies may take on more debt to fund the AI buildout.
Oil is adding to the pressure. Brent crude climbed above $114 per barrel on Friday, its highest level in over five months. Escalating Houthi attacks on Saudi targets and reports of possible renewed US strikes against Iran raised supply risks in the Middle East.
Are rate hikes back on the table?
Rate hikes are still on the radar. Higher oil prices are increasing inflation worries, and the US dollar has gained strength. This has strengthened expectations that interest rates could stay high for longer. Markets expect a policy hold on October 27–28, with significant chances of a December increase. Why does that hurt silver? Higher expected rates raise the opportunity cost of holding it. The dollar remains strong and industrial activity is moderating, which adds to the pressure.
Where is the silver lining for metals?
There is a silver lining for metals, and it comes from bond markets. Yields are easing. But look closer. It isn’t because inflation is cooling. It is because of the equity market meltdown. Investors are dumping AI-linked stocks and moving the money into safer bonds. That demand is pushing yields lower.
The yield on the US 10-year Treasury note held around 4.97% on Friday. It had fallen by more than 10 basis points in the previous session to its lowest level in a month. The decline came as the selloff in technology and AI stocks prompted investors to seek safer assets, including government bonds.
Why has silver fallen harder than gold?
Of the two precious metals, silver has fallen harder. The reason is its double role. Silver is both an investment asset and an industrial metal. Gold faces the same monetary pressure and the same headwinds. But silver also depends on manufacturing demand, and that double exposure has made its decline sharper.
Can import duties save Indian silver prices?
The increase in import duties in May has offered some support to domestic silver prices. It makes imports more costly, which cushions Indian prices when global prices fall. But the shield has limits. Domestic prices still depend on international silver prices and currency fluctuations. The metal’s approximately 50% decline from its peak in India shows that higher import duties cannot avert a significant correction.
Article by Sunil Dhawan
Source: Financial Express
Disclaimer: This article is for informational purposes only and does not constitute investment advice.
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