Silver prices in India declined over the past two days as traders capitalised on recent gains, amid ongoing volatility driven by industrial demand fluctuations and global market conditions, with analysts monitoring potential corrections and long-term trends.
Silver prices slipped in India on Thursday and Friday as traders booked profits after a sharp run-up that had pushed the metal to record or near-record levels in recent months. According to informalnewz.com, the most-active contract on the Multi Commodity Exchange fell about 1% to Rs 2,33,100 per kilogram in early trade, while the All India Bullion Association said the price in New Delhi dropped by Rs 6,000 to Rs 2.40 lakh per kilogram on Thursday, August 13.
The latest pullback comes against a backdrop of exceptional volatility in a market that has been driven by both investment demand and industrial use. The Silver Institute said in its World Silver Survey 2026 that global silverware fabrication fell 21% in 2025, with India, the largest market, down 25% as high prices encouraged lighter products and smaller purchases. The report expects another decline in 2026, with Indian silverware demand projected to fall to 27.6 million ounces, the lowest since 2021, though demand may improve briefly around Diwali and the wedding season before weakening again.
Broader market conditions have also helped explain the recent swing. The Silver Institute’s April 2026 and February 2026 publications said silver hit $84 an ounce in December 2025, with the annual average rising 42% year on year to just over $40, while the silver market recorded a fifth straight year of deficit. That scarcity, combined with tight liquidity and strong investor interest, helped silver outperform gold. At the same time, higher prices have raised questions about how long industrial users can absorb the cost, particularly in solar equipment, electronics and other manufacturing sectors.
For now, traders are watching the balance between profit-taking, US interest-rate expectations and industrial demand. Industry analysts cited by Vardhaman Capital say India’s role as a demand centre, together with a weaker rupee, can amplify moves in local prices, while continued deficits support the longer-term outlook. But the same forces can also work in reverse, leaving silver vulnerable to sharp corrections when enthusiasm fades.
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