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New Delhi: If you are also thinking of investing in silver or planning to buy jewellery, then this news may blow your senses. The speed of silver which was going up like a rocket, has now suddenly seen a tremendous brake. After giving a bumper return of nearly 170% in the year 2025 and rising further to 74% in January 2026, silver prices have now fallen in a way that has surprised even the market veterans. The situation is that silver has now slipped below its 2025 closing level. Falling from the level of Rs 2.41 lakh, the prices have now come down to around Rs 2.38 lakh.

Historic fall of 46% in three months If we look at the market data, the depth of the decline becomes clear. Silver futures for May have fallen from their record high of ₹4.39 lakh per kg to below ₹2.40 lakh in just three months. This means that a huge decline of about Rs 2 lakh per kg has been recorded. This sharp selling has scared both small and big investors and people are now trying to withdraw their money to reduce the risk.

Why did silver fall so drastically? According to experts, there are three main reasons behind the loss of shine of silver:

• West Asia crisis: Usually, when there is an atmosphere of war or tension, people buy gold and silver considering it as a safe investment. But this time the opposite happened. Investors, in an attempt to increase their cash, sold heavily, due to which the prices crashed.
• Strong US Dollar: The strength of the dollar in the global market has broken the back of silver. As the dollar becomes expensive the demand for silver decreases. Additionally, the US Federal Reserve’s tough stance has also put pressure on prices.
• Profit Booking: When silver was at record levels, big traders started withdrawing their profits. This mass selling added fuel to the fire of the decline.

Would it be wise to buy now? Even though the short term decline may look scary, according to the report the long term outlook for silver is still very strong. The biggest reason behind this is industrial demand, which accounts for more than 60% of the total consumption. The most surprising thing is that there has been a shortage of silver supply in the market for the last 5 years and now the situation is going to remain the same in the sixth year.

Experts’ advice and technical perspective Market experts say that investors should not make the mistake of investing all the money at once. Instead, a better strategy would be to invest gradually (Staggered investment). Currently, silver is trading around ₹ 2,45,200 on MCX. Technically there is a resistance at ₹2,46,000. If prices cross this, silver may again go towards the level of ₹2.47 lakh to ₹2.48 lakh. Overall, even though the decline may be sharp, silver is far from lost its shine in the long run.