The shine of silver was unmatched last year. Prices were skyrocketing, but now the market trend seems to be changing. Last year, silver had touched a record level of Rs 2.54 lakh per kg, which has now come down to around Rs 2.35 lakh in the domestic market. However, what is a matter of concern for investors and the general public is that market experts are now predicting an even steeper decline. While there was a huge surge in prices in the year 2025, there are now signs of a major crash in the future.
After a historic rise of 180% in the year 2025, experts are now predicting a huge decline of up to 60%.
There were many solid reasons behind the rise in silver prices last year. The year 2025 saw an increase of almost 180% in prices due to increasing demand and lack of supply. The main reason for this was the change in technology, when big companies switched from lithium-ion batteries to solid-state batteries, due to which industrial demand suddenly increased. Apart from this, rising tensions between the US and Venezuela and supply disruptions from countries like Peru and Chad also boosted prices. At the same time, the news of indirect ban on export of silver by China from January 1, 2026 also added fuel to the fire in the market.
Silver is proving to be very expensive for the industry, now companies are rapidly shifting towards cheaper alternatives like copper.
Market experts believe that today the price of silver has reached such a dangerous level that its industrial demand is in danger. The rule of economics is that when the cost of a raw material increases beyond a limit, industries start looking for alternatives. Companies making photovoltaic cells and solar panels have already shifted from silver to copper. Efforts to adopt copper binding technology instead of silver in battery manufacturing have also intensified. If this change is fully implemented, there will be a huge decline in demand for the white metal, which could see prices fall by up to 60% by the end of FY 2027.
Signs of recession are hidden in the pages of history, like 1980 and 2011, the bullish bubble may burst once again.
If we look at the old records of silver, it shows that whenever there has been a strong ‘bull run’ in it, after that the market has fallen drastically. History seems to be repeating itself. A similar scenario was seen in 1980 when a large portion of the world’s silver reserves were hoarded, after which short-covering began as margin money increased and prices fell from approximately $49.50 to $11. Even in the year 2011, after reaching its highest level, silver fell by 75%. Even at present, margin money is being increased by the exchanges, which is an indication of lack of liquidity. This pattern is indicating that in the coming time, silver may once again register a big historical fall.
