Silver Prices Plunge Rs 21,000 in an Hour After Record Boom

New Delhi: Silver prices on the country's Multi Commodity Exchange (MCX) had a roller-coaster session on Monday. Early in the day, prices hit an all-time high near Rs 2.54 lakh per kilogram. But the metal shed about Rs 21,000 per kg in barely an hour of afternoon trade. The sudden drop surprised traders and investors across the precious metals market. 

Why Did The Silver Price Crash So Fast? 

Traders said the sharp fall came as investors rushed to lock in gains after silver's historic surge this year. Many market participants chose to sell rather than hold, triggering a wave of profit-booking. The rapid selling pushed prices down quickly. Global market cues also played a role. International silver briefly climbed past $80 per ounce before pulling back, and easing geopolitical tensions reduced safe-haven demand. 

How unusual is this movement?

Silver has been one of the standout performers in 2025, with prices climbing sharply on strong industrial demand, supply constraints and rising investor interest. Yet such sharp intra-day swings are rare. Analysts call it a "correction" after an overextended rally, not an outright trend reversal. 

What it means for buyers and investors

For those holding silver futures or physical metal, the sudden dip is a reminder of how quickly prices can shift. Short-term traders may see opportunity in the swings, while long-term investors are urged to assess broader market signals before making big decisions. 

From early 2025 to late December, the price of silver in the country climbed from about Rs 98,900 per kilogram to over Rs 2.5 lakh. That's a gain of roughly 155 per cent in just one year. In the past two months alone, prices jumped by around Rs 99,000.