Sharp Fall in Silver Rate
Silver prices have witnessed a sharp decline over the past few days. The metal, which had offered investors the prospect of excellent returns at the beginning of 2026, is now facing heavy selling. In India, the price of silver has fallen below ₹2 lakh per kilogram, reaching an 11-month low.
On October 23, 2026, the price of December silver futures on the MCX fell to approximately ₹1,92,800 per kilogram. Compared to the record high reached in January, the price of silver has declined by more than 50%. Some market reports indicate this drop to be around 55%. However, the exact percentage of the decline may vary slightly across different reports, depending on the specific January peak price and the current price used for the calculation. The most notable development is that silver has broken through the support level of ₹2,08,000 per kg, which had held for the past four months. Furthermore, a decline of approximately 7.64% over the last two trading sessions has heightened investor concerns.Silver rate
Silver Rate Fall Today
To understand the decline in silver prices, it is important to look at these figures.
Record level in January 2026: Around ₹4.20 lakh per kg.
MCX price on October 23, 2026: Approximately ₹1,92,800 per kg.
Current market situation: Price is at an 11-month low.
Key support: The ₹2,08,000 per kg level has been breached.
Decline over the last two trading sessions: Approximately 7.64%, according to market data.Silver rate
Keep in mind that the price of silver can vary between MCX futures, the spot market, and retail jewellery stores. When purchasing silver from a store, GST, local premiums, and other charges may also apply.
5 major reasons for the decline in silver prices
1. Profit-taking following a record surge
At the beginning of the year, silver prices experienced a sharp jump. When an asset rises rapidly over a short period, many investors begin selling it to lock in their profits. This is exactly what happened with silver. Prices started to decline from their record highs, and the downward trend accelerated as selling intensified. When a large number of investors begin selling simultaneously, it can exert additional pressure on prices.Silver rate
2. Concerns over interest rates remaining high in the US
Unlike gold, silver does not generate regular interest. Consequently, when the market anticipates that interest rates in the US might remain high for an extended period, investor interest may shift toward options that offer interest returns. This could impact the demand for precious metals. The market will now keep a close watch on the US Federal Reserve’s upcoming decisions and data related to inflation.Silver rate
3. Strong Dollar and Expensive Crude Oil
The price of silver in the international market is influenced by the US dollar. A stronger dollar can make silver more expensive for buyers in other countries, which may put pressure on demand. Furthermore, a rise in crude oil prices raises concerns about increasing inflation. If interest rates remain high due to inflation, this can also impact metals like silver.
4. Concerns Regarding Industrial Demand
Silver is not used solely for jewelry or investment purposes. It is also utilized in solar panels, electronics, electric vehicles, and a wide range of industrial products. If demand from sectors such as solar panel manufacturing or technology-related industries weakens in major markets like China, concerns regarding the future consumption of silver could arise. However, this does not mean that the industrial demand for silver is disappearing entirely. In the long term, growth in these sectors could continue to support the demand for silver.
5. News Regarding Imports in India
A significant portion of the demand for silver in India is met through imports. According to recent reports, the government has permitted the import of approximately 6,500 metric tonnes of silver over the next six months. If this additional supply enters the market, the availability of silver in the domestic market could increase. This is likely to narrow the gap between domestic and international prices.However, news of imports alone does not guarantee a decline in prices. Actual prices are influenced by a combination of factors, including international rates, demand, the status of the rupee, and available supply.Silver rate
When the ₹2,08,000 support level is broken ?
In technical analysis, ‘support’ refers to a price level where buyers have previously become active, helping to halt a decline.For the past four months or so, silver had been attempting to hold above the ₹2,08,000 level. The breach of this level now signals weakness in the market. This does not necessarily mean that prices will inevitably fall further. However, following the breakdown of this support level, investors should observe whether or not prices manage to climb back above it.
At The End
If silver rebounds sharply above ₹2,08,000 and sustains that level, it could signal a recovery in the market. On the other hand, if prices remain low, selling pressure may persist. Therefore, it would not be prudent to base a decision to buy or sell solely on the breaking of a support level.
The decline in silver prices to below ₹2 lakh per kilogram marks a significant shift for investors. The substantial drop from the record highs seen in January, combined with heavy selling over the last two trading sessions and the breach of the ₹2,08,000 support level, points to weakness in the market.However, a decline in price does not necessarily mean that silver will immediately rebound. In the coming days, it will be essential to monitor factors such as US interest rates, the value of the dollar, crude oil prices, industrial demand, and supply levels within the domestic market.Long-term investors might consider staggered buying in line with their risk appetite, whereas those seeking short-term gains may find it more prudent to wait for market stability.Silver rate
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Frequently Asked Questions (FAQs)
1. Why did the price of silver in India fall below ₹2 lakh per kilogram?
Key reasons include profit-booking following a record surge, a stronger US dollar, concerns regarding high interest rates, expensive crude oil, and apprehensions about industrial demand.
2. Has the price of silver fallen by 55%?
A decline of more than 50% has been recorded from the peak levels seen in January 2026. The figure of approximately 55% depends on the specific peak price used for the calculation versus the current market price.
3. Should one buy silver right now?
This depends on your investment horizon and risk tolerance. Long-term investors might consider buying in stages, while short-term investors should be cautious of sharp price fluctuations.
4. Could the price of silver rise above ₹2,08,000 again?
It is possible, but not guaranteed. This would require a price correction, strong buying activity, and supportive market conditions.
Disclaimer : This article is written for informational and educational purposes only. It should not be considered as personal investment advice. Silver prices can fluctuate rapidly, and investments carry the risk of loss. Conduct your own research before making any investment decisions, and consult with a qualified financial advisor if necessary.
