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Silver price in India has dropped sharply after a strong rally, erasing all gains in 2026. The metal now trades at Rs. 2.38 lakh per kilogram, which is lower than the previous year’s closing level.
Silver saw a massive surge, with a 170% hike in 2025. This rise in prices continued in early 2026, making silver one of the top-performing assets. However, the trend changed quickly, and the metal fell by approximately 46% from the peak price of Rs. 4.39 lakh per kilogram. Nearly Rs. 2 lakh per kilogram has been wiped out from the market.
The sudden fall has surprised several stakeholders in the market. Investors have started selling to reduce risk, and many have shifted their capital to safer options.
A strong dollar is one of the main reasons behind this fall. It has reduced the demand for silver. When the dollar becomes stronger, silver becomes expensive for global buyers, affecting the purchase interest.
At the same time, global tensions and rising crude oil prices have added pressure. Investors sold silver to manage losses and balance their portfolios. Profit booking also played a major role, as many traders decided to secure their gains after a strong rally.
Despite the fall, the long-term outlook for silver investment remains steady, with strong industrial demand. The metal is used in solar panels, electronics, and electric vehicles. The expansion of these sectors supports future demand.
Supply is also tight. The global market has faced a shortage of silver for several years. Low supply and steady demand can help prices in the long run.
Experts say the fall is not a sign of weak demand. Funds have moved to other areas like crude oil due to rising inflation concerns. Silver still remains an important asset in the precious metals space.
In the short term, prices may remain under pressure due to global factors like interest rates and currency movements. Silver price in India may take time to recover, but the current fall could attract long-term investors. The future trend will depend on global demand, the dollar, and overall economic conditions.
