Silver Price Today: White metal drops sharply — Should investors buy, hold or book profits? | Anil Singhvi explains

Silver prices experienced a sharp decline after reaching record highs, sparking concern among investors. Anil Singhvi, Managing Editor, Zee Business, said the fall was sharp but not unexpected after an extended one-sided rally.

Silver first touched a record level above Rs 2,54,000 per kg on MCX. Soon after making the high, prices corrected sharply.

Sharp Fall After Record Rally

Add Zee Business as a Preferred Source

Silver fell nearly 15 per cent in a single session. This was the steepest intraday fall in about 14 years. From the peak, silver lost around Rs 30,000 per kg and closed below Rs 2,25,000.

Singhvi said such sharp moves do not happen without strong reasons. The first key trigger was a sharp increase in margin requirements by global exchanges, including CME.

Margins were raised to curb excessive speculation following an unusually rapid rise in prices. Silver had gained nearly Rs 70,000 in a single month, which Singhvi said was unsustainable.

The second factor was profit booking. Singhvi said that after such a strong rally, some correction was inevitable. He added that the faster an asset rises, the sharper the fall tends to be. Investors who entered at lower levels chose to book profits near record highs.

Gold and platinum also saw sharp declines. International gold prices fell by around $200, or nearly 5 per cent. In India, gold slipped by about Rs 5,000 per 10 grams and moved below Rs 1,35,000. Platinum also dropped nearly 15 per cent intraday.

Is the Silver Bull Run Over?

Singhvi said investors should not conclude that the silver bull run is over. He said bull markets do not end in a single day, even if the fall is sharp. According to him, it is too early to call this a trend reversal. However, he cautioned that the phase of easy, one-way gains is likely over for now.

What Investors Should Do Now

He advised investors not to chase prices aggressively. Those holding silver should use strict trailing stop losses. Fresh buying should be done only gradually and at lower levels. Singhvi said silver may take time to cross its previous highs again and could enter a consolidation phase.

He added that industrial demand for silver remains strong, which supports the long-term outlook. Copper, another industrial metal, continues to trade near record highs, indicating underlying demand strength in the commodity space.

Singhvi said investors should remain calm and disciplined. He advised against emotional decisions after sharp price swings. According to him, sensible positioning and risk management are key in the current volatile phase.

So far this year, silver prices have risen sharply, gaining 167.55 per cent, or Rs 1,50,300 per kg, from Rs 89,700 per kg as of December 31, 2024.