Silver prices crash over 40% from Rs 4 lakh/kg high to Rs 2.35 lakh, but buyers are still staying away; b - The Times of India

AI desk brief

Silver has fallen more than 40% from its January peak of above Rs 4 lakh/kg to Rs 2.35 lakh/kg in Mumbai spot trading this week, but the price collapse is not yet pulling buyers back in. Instead, refiners and bullion dealers are reporting rising inventories as fresh investment demand stays weak ahead of the festive season.

The article says the demand softness is visible across silver ETFs, bars and coins, with investors who bought at much higher levels now sitting on steep losses and reluctant to re-enter. Traders also pointed to uncertainty over a possible breakthrough in the US-Iran war and subdued industrial demand as additional headwinds.

Near term, the setup is bearish for silver sentiment despite the correction, because there is no clear evidence of a bargain-hunting response. Watch whether festive-season buying emerges or whether inventory build-up forces more aggressive discounting in the local market.