Silver crashes 19% in India: What triggered the fall and what investors should do now

Mumbai: Silver prices plunged nearly 19% to Rs 3.12 lakh per kilogram in Delhi on Saturday, while gold fell 2% to Rs 1.65 lakh per 10 grams, as investors booked profits amid a global selloff driven by a stronger US dollar.

According to the All India Sarafa Association (AISA), silver nosedived Rs 72,500, wiping out much of the record gains made earlier this week. The white metal had touched a historic high of Rs 4,04,500 per kg on Thursday before dropping 5% on Friday. Despite the recent fall, silver still recorded sharp monthly gains, rising 30.5% from Rs 2,39,000 per kg at the end of December 2025.

Why did silver fall so sharply?

Silver prices in India fell sharply as investors rushed to book profits after the recent rally, while global cues weakened sentiment. A stronger US dollar pushed down international precious metal prices, which directly impacted MCX silver rates and domestic bullion markets.

Gold prices also declined sharply on Indian exchanges, with MCX gold futures slipping nearly 12%, dragging silver lower as well. Market experts say silver often sees bigger swings than gold because of higher trading volumes and speculative activity, making it more volatile during corrections.

What should investors do?

Experts advise caution amid the sharp corrections. Geojit Investments highlighted that silver remains structurally strong due to tight supply and growing industrial demand, but corrections are part of its market behavior.

Silver’s industrial relevance in solar, electronics, and medical technologies alongside its role as a hedge keeps it attractive for long-term portfolios. However, analysts stress risk management and position sizing after such volatile swings.

Despite the recent crash, silver remains on track for one of its strongest January performances on record, signalling strong momentum for investors keeping a disciplined approach.