A significant relief has emerged for silver enthusiasts and investors. Silver prices have witnessed a sharp decline over the past two days. According to the latest report from the India Bullion and Jewellers Association (IBJA), the price of silver fell by ₹2,871 per kilogram on the morning of July 16, reaching ₹1,10,996 per kilogram. Two days earlier, on July 14, its price had peaked at ₹1,13,867 per kilogram, which was the highest level to date.
Price Drops by Over ₹1,000 in Just 24 Hours
In the last 24 hours alone, the price of silver dropped by ₹1,001. On July 15, the price of silver was ₹1,11,997 per kilogram, which decreased to ₹1,10,996 on July 16. This decline occurred at a time when silver had been steadily rising for several weeks, attracting increasing interest from investors.
Decline Caused by Weakness in the Global Market
Experts attribute this decline in silver prices to weakness in the international market. In the global market, silver prices have fallen from a record high of $39.5 per ounce to $38.15 per ounce. The price of silver has seen considerable fluctuations internationally over the past week. This has also impacted domestic prices.
Price Rose by ₹6,900 in Three Days
On July 10, the price of silver in India was ₹1,06,900 per kilogram. Subsequently, within just three days, until July 13, the price of silver reached ₹1,13,867 per kilogram. During this period, an increase of approximately ₹6,967 per kilogram was observed. However, the decline started on July 14 and has continued since then. The preceding surge had surprised both investors and traders.
Silver Has Become Approximately ₹25,000 More Expensive This Year
If we look at the figures for the entire year, silver prices have shown a b upward trend. On January 1, 2025, the price of silver was ₹86,017 per kilogram. It has now increased to ₹1,10,996. This means that silver has appreciated by ₹24,979, or over 29 percent, since the beginning of the year. The main reasons for this increase include the demand for precious metals in the global market and the weakness of the dollar.
Investment in Silver ETFs Increased Demand
According to Soumil Gandhi, Senior Commodity Analyst at HDFC Securities, a major reason for the rise in silver is that investors are now viewing it as an alternative to gold. There has been significant investment in silver ETFs in recent months, leading to an increase in the demand for silver. Silver is now emerging not only for jewelry or industrial needs but also as a b investment option.
Industrial Demand Also Affects Prices
Silver prices are determined not only by investment and the global market but also by its industrial demand. Silver is used in various industries such as solar panels, electronics, and photography. Demand in these sectors increased in recent months, which also affected prices. However, as some softening occurred internationally, prices turned downwards.
Global Impact on the Domestic Market
India is one of the world's largest consumers of silver. Silver is used in India for various purposes, including weddings, religious ceremonies, gifting, and investment. Since India imports a large portion of silver, any fluctuations in the global market directly affect the country's prices. Factors such as the strength or weakness of the dollar, interest rates of the US Federal Reserve, and economic crises determine the trend of silver prices.
