Open account

Silver prices crash nearly 50% in 5 months. Is it still worth investing?

Silver has suffered a steep correction, falling nearly 50% from its late-January high of $121 per ounce to below $64 within five months. The article argues the drop was driven more by speculative unwinding, profit-taking, and a shift in expectations for US monetary easing than by a collapse in underlying fundamentals. Industrial demand remains supported by solar, EV, and electronics usage, while mine supply and recycling have stayed broadly stable. However, weak ETF demand, a strong US dollar, and softer global manufacturing have weighed on prices. In India, MCX silver also fell sharply from ₹4.28 lakh/kg to about ₹2.39 lakh/kg, though a weaker rupee and festive-season demand could offer some support. The piece concludes that silver’s medium-term fundamentals remain intact, but near-term volatility is likely to persist.

Category

Silver

Sentiment

Mixed

Event

Market commentary

Reading time

1 min