Silver prices erase all 2026 gains to plunge Rs 2 lakh from January peak. Perfect time to buy?

Silver has seen a sharp, rapid selloff that erased all 2026 gains, undermining what was one of 2025’s best-performing assets. May silver futures plunged ~46% from a record Rs 4.39 lakh/kg to below Rs 2.40 lakh in three months, knocking spot levels to about Rs 2.38 lakh (below 2025 close). The drop was driven by a stronger US dollar, hawkish Fed expectations, profit-taking after an overstretched rally, and broader risk-off flows amid Middle East tensions and rising crude prices. Despite the rout, analysts and funds (Tata MF, Enrich Money) point to strong industrial demand (>60% of consumption) and persistent multi-year supply deficits as supportive for a medium-to-long-term recovery; they recommend staggered accumulation rather than aggressive buying. Technicals show recent activity around Rs 2,45,200 with resistance near Rs 2,46,000–2,48,000, suggesting short-term volatility but a cautiously constructive longer-term outlook.