Silver Price Crash: Silver previously hit a historic high of ₹4.20 lakh per kg. Since that record high, prices have been falling due to persistent profit-booking and global pressure.

Silver prices fall sharply, but here's what could happen next.

Silver Price Predictions: After rising at a rocketing speed, silver prices are now witnessing a significant decline, raising concerns among investors. Silver has slipped to around Rs 2.5 lakh per kg on the Multi-Commodity Exchange of India (MCX). Earlier, silver had touched a historic high of Rs 4.20 lakh per kg. Since that record high, prices have been falling due to continuous profit-booking and global pressure. Currently, it is trading in the range of Rs 2.30 lakh to Rs 2.70 lakh per kg.

Why are investors worried?

The biggest question on investors' minds is whether silver prices will fall further or whether they could rebound. There are several major reasons behind the recent decline: Strong economic data from the US has reduced the likelihood of an interest rate cut soon. When expectations of a rate cut decline, the dollar strengthens.

A strengthening dollar makes silver more expensive in the international market, as its price is determined in dollars. This impacts global demand and puts pressure on prices. Massive profit-taking: After hitting record highs, large investors and traders began booking profits. When large-scale selling occurs, prices tend to fall sharply.

In the international market, COMEX silver prices fell sharply after reaching a record high of $121. This had a direct impact on Indian market sentiment.

What could happen next?

Market experts believe that silver may remain under pressure in the short term due to a strong dollar and persisting global uncertainties. In the long term, industrial demand for silver (particularly in the solar and electronics sectors) is expected to remain strong, which could support prices.

However, the recent decline has been steeper than average, suggesting that the market is currently experiencing a volatile phase. It may be time for investors to exercise caution and proceed with a long-term strategy.