Silver is being talked about a lot, and a huge jump was seen in its prices on Monday. On MCX, the price reached ₹2.54 lakh per kg. However, this was followed by a sudden shock, and the price of silver fell to ₹21,500 per kg, which means silver became cheaper by more than ₹21,000 in a single day. In a way, a big market drama happened in the bullion market. Silver price created history early in the day and then fell by ₹21,500 within an hour. Investors are wondering what was the reason for this sudden fall in silver prices.
Sudden fall in silver prices
In the morning, when the March futures price of silver on MCX broke the record of ₹ 2,54,174 per kg, it seemed that this would be the last trading session of 2025 in the name of silver. But as soon as a wave of profit booking hit the market, the price quickly moved in the opposite direction and touched ₹2,32,663, which means silver price dropped by almost ₹21,500 in a short period of time. According to experts, this decline is not sudden, but a normal reaction after a sharp rise. Many traders started selling silver to protect their profits, which further accelerated the market decline.
Reasons behind the volatile surge in silver
It is worth noting that the international market first put pressure on silver. Global silver prices initially reached $80 an ounce. But then they dropped to $75, which impacted home prices. The change also included reports of some easing of Ukraine-Russia tensions, which reduced demand for ‘safe-haven’ investments. It is worth noting that silver has given tremendous returns last year. In December 2024, the price of silver was around ₹90 lakh per kg, from where the price has increased by more than 150%. On Monday, silver price on MCX (Multi Commodity Exchange) touched ₹254,000 per kg.
Experts say that silver prices are increasing due to many reasons. Increased industrial demand, increased investor interest in safe-haven assets, and global economic uncertainty are all contributing to increased demand for silver. In particular, increased demand for silver in green energy technology, electric vehicles, and solar panels has helped push prices higher.
