Silver Prices Plummet by ₹10,000 in a Single Day: Will Prices Fall Further or Stage a Strong Comeback?

Silver Prices: A sharp decline in silver prices was recorded on Thursday. ​​In just one day, silver became ₹10,000 cheaper, creating volatility in the precious metals market.

Silver Prices: Silver prices witnessed a significant drop on Thursday. During trading on the MCX (Multi-Commodity Exchange), the cost of silver fell by ₹10,000 per kilogram.  Consequently, the price of silver for delivery on March 5, 2026, closed at ₹2,40,605 per kilogram, down from ₹2,50,605 per kilogram.

This decline in silver prices comes after reaching a record high of $83.60 per ounce in December. This sharp fall in silver prices has worried investors and created instability in the precious metals market. Now the question is, will silver prices fall further, stabilize, or rise again in the coming days?

Will the price fall further?

According to an ET report, HSBC has updated its outlook for silver, forecasting a gradual decline in prices in the coming years. However, it has raised its average price forecast for 2026 to $68.25 per ounce. HSBC estimates that silver prices will fall to $57.00 in 2027 and to $47.00 per ounce by 2029.

The bank attributed the decline in silver prices to a decrease in industrial demand and a significant drop in demand from jewelry buyers due to high prices. The bank also stated that the demand for silver saw a significant drop of 230 million ounces in 2025. This is projected to decrease further to 140 million ounces in 2026 and to just 59 million ounces in 2027.

Reasons for the decline in silver prices:

Profit-taking: This could be a major reason for the fall in silver prices. Silver reached its all-time high in December 2025. Now, profit-taking has begun, leading to a decline in prices.

Weak demand: In 2025, the demand for silver, whether for solar panels, electric vehicles, or various electronic products, had increased to approximately 1.2 billion ounces. However, this year, due to a slower pace of solar capacity expansion and weaker global manufacturing growth, a decrease in silver demand is expected.

Stronger dollar: Precious metals have an inverse relationship with the US dollar. Therefore, when the dollar index strengthens, it puts pressure on metals like gold and silver. This is because they become more expensive for foreign buyers.