New Delhi, Monday, October 20 (H.S.): After setting new records in the bullion market, silver prices are now witnessing a sharp downward trend. Over the past week, silver rates have dropped by more than ₹8,000 per kilogram on average across India. In major southern cities like Chennai and Hyderabad, the plunge has been even steeper — with a decline of up to ₹17,000 per kilogram within just seven days.
On October 15, silver in both Hyderabad and Chennai had surged to a historic high of ₹2,07,000 per kilogram. As of today, however, prices in these cities have fallen back to ₹1,90,000 per kilogram. In Delhi, silver is currently trading at ₹1,71,900 per kilogram — a level consistent with rates in Mumbai, Ahmedabad, Kolkata, Jaipur, Surat, and Pune. Bengaluru remains slightly higher at ₹1,79,900 per kilogram, while Chennai and Hyderabad are now aligned at ₹1,89,900 per kilogram.
According to bullion market expert Mayank Mohan, the earlier surge in silver prices was driven by global economic volatility, constrained supply in the London international silver market, and a spike in industrial demand. Internationally, silver had approached a high of $60 per ounce, buoyed further by robust festive demand in the domestic market. With gold prices also soaring, smaller investors found silver a more attractive investment alternative — resulting in a 40% year-on-year surge in silver coin sales alone.
However, Mohan notes that profit-booking at elevated price levels led to a correction last week. Moreover, the silver supply crunch in London, which had persisted for two weeks, has now largely stabilized. As a result, international silver prices have fallen by nearly 6% this week, marking the largest weekly decline in six months. With festive buying in India largely complete, the domestic market has mirrored this global drop, reflecting significant corrections.
Tarkeshwar Nath Vaishnav, CEO of TVN Financial Services, added that the recent price volatility — both upward and downward — can be traced to intense fluctuations in the London International Silver Market. On October 9, the market faced an acute supply crisis, leading to panic buying and minimal selling, which temporarily halted trading and pushed prices to all-time highs. Now that the crisis has eased and supply conditions are improving, prices have begun to normalize globally — directly impacting Indian bullion rates.
In just one week, this global correction has translated into a steep ₹8,000 to ₹17,000 per kilogram drop in silver prices across Indian markets, marking a dramatic shift in the precious metals landscape.
Hindusthan Samachar / Jun Sarkar
