Silver has lost half its value since January

Silver was the trade of January. It rose about 70% in four weeks and on 29 January MCX silver futures closed at a record ₹3,99,893 a kilo. On 22 October they closed at ₹1,99,599, down 50.1%.

The fall has sped up this month. The IBJA rate for 999 silver, the benchmark Indian jewellers use, fell 16.5% between 23 September and 23 October, and 9.1% in the seven sessions from 14 to 23 October alone, to ₹1,94,415 a kilo. Over those same seven sessions the IBJA gold rate fell 3.0%, to ₹1,41,630 for 10 grams.

Why silver is falling harder than gold

Silver is half an industrial metal. About 58% of demand comes from industry, especially electronics and solar panels, and the Silver Institute expects industrial demand to fall about 3% in 2026 as solar makers use less silver per panel. When markets worry about growth, that side of silver suffers.

Interest rates matter too. Silver pays no interest, so it becomes less attractive when rates rise. The US Federal Reserve raised its policy rate to 3.75–4.00% on 16 September, and oil above $100 has raised the odds of more increases. Exchanges have also raised margins, forcing some leveraged traders to sell.

Gold has held up better because central banks keep buying it, and because a weaker rupee raises its rupee price. With gold falling more slowly, the gold-to-silver ratio, the number of grams of silver that buy a gram of gold, rose from 68 to 73 in a week.

In January silver behaved like a growth stock. It has fallen like one.

Note that prices differ by source. MCX futures, the IBJA rate (which excludes GST) and retail prices quoted by jewellers are not the same number, so compare like with like.

Sources: MCX closing prices and the reasons for the fall as reported by Moneyvesta (23 October 2026), citing the Silver Institute and the US Federal Reserve; Goodreturns (23 October 2026) on rupee weakness and gold; IBJA rates collected daily by India in Data. Not investment advice.