Silver crashes 40%, but buyers vanish; 2,000 tonnes could now pile up in India
Silver prices have fallen steadily over the past seven months, following an extraordinary rally that pushed the metal more than 300% higher year-on-year. In January, silver crossed Rs 4 lakh per kg on the Multi Commodity Exchange for the first time.
Silver prices dropped by over 40% from their January peak, but this decline has not sparked renewed demand, leaving investors reluctant to purchase the metal. In Mumbai's spot market, silver reached Rs 2.35 lakh per kg earlier this week. Traders and analysts note that investment demand for silver ETFs, bars, and coins has weakened.
The concern over an end to the US-Iran war and subdued industrial demand have contributed to the slump. Domestic players are facing mounting inventories, with Indian bullion dealers and refiners placing orders for around 2,000 tonnes of silver, currently in transit. This stockpile adds to worries about an even greater buildup in silver reserves.
Experts suggest that silver prices might not reach $100 per troy ounce in the near future, unless the US-Iran conflict concludes. The ongoing war and doubts about industrial demand have created a negative sentiment around silver. However, long-term investors are still considering silver as a portfolio diversifier, with some planning staggered investments in silver ETFs to mitigate the impact of short-term price fluctuations.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
