Silver prices plunge over Rs 21,500 per kg after record-setting rally

Silver prices recorded a sharp reversal on Monday as profit-booking dragged the metal off its record peak. MCX Silver March futures fell by Rs 21,511 per kg to touch an intraday low of Rs 2,32,663 per kg, after hitting a fresh all-time high of Rs 2,54,174 per kg earlier in the day.

Global markets also saw intense volatility. International spot silver briefly crossed $82.61 per ounce, marking its highest ever level, before retreating below $74 per ounce later in the session.

The price swing comes amid an apparent sudden rush among investors to lock in profits following a strong rally.

Select analysts pointed out that the underlying fundamentals in the silver market remain supportive.

Navneet Damani, Head of Research – Commodities, and Manav Modi, Commodities Analyst at Motilal Oswal Financial Services Ltd (MOFSL), said, "Silver's 2025 rally is being shaped by real metal scarcity rather than speculative positioning. Physical deficits, policy-driven supply restrictions and concentrated inventories are increasingly dictating prices, signalling a durable shift in how the silver market is priced and traded."

Highlighting silver's behaviour within the broader commodities cycle, Ponmudi R, CEO of Enrich Money, stated, "Silver is increasingly emerging as the higher-beta outperformer of the current cycle, supported by a combination of risk-hedging demand and robust industrial demand amid supply constraints."