Why Silver Price Is Falling: ₹56,000 Off Its August Peak. Should You Buy Silver Now?

If you bought silver in August, the last few weeks have hurt. A kilo that cost about ₹2,48,800 at its August peak touched ₹1,92,800 on Friday, 23 October 2026, a drop of roughly ₹56,000 and its lowest level since December 2025, according to Mint.

So why is silver price falling so fast, and is this a bargain or a trap? With Dhanteras on 6 November, millions of families are asking the same thing. Here’s what’s driving the slide, in plain language, and a simple way to decide what to do.

Silver price today: how far has it fallen?

Here are the numbers that matter, from the Multi Commodity Exchange (MCX) and global markets:

• Last week: MCX silver for December delivery fell ₹15,087, or 7.14%, to settle at about ₹1.96 lakh per kg, PTI reported via Business Standard.
• From the August peak: down about ₹56,000 per kg (₹2,48,800 to ₹1,92,800 at Friday’s low), Mint reported. Silver was on track for a fifth straight weekly loss.
• From the record high: silver once hit ₹4,20,048 per kg, so it has now lost more than half its value. That came after a 170% surge in 2025, Mint noted.
• Globally: COMEX silver futures fell nearly 6% (about 5.8%) last week to $53.95 an ounce, CNBC-TV18 reported, a level last seen in November 2025, according to Moneycontrol.

Gold fell too, but less: MCX gold lost ₹5,768 (nearly 4%) last week to about ₹1.42 lakh per 10 grams. If you’re weighing gold instead, our guide to the hidden costs of jewellery, digital gold and gold ETFs breaks down every charge.

Why is silver price falling? 5 reasons in plain English

1. Expensive oil is reviving inflation fears

Brent crude settled above $117 a barrel, Business Standard reported, as tensions in West Asia threatened supply. Costly oil pushes up prices of almost everything, so central banks become less willing to cut interest rates.

2. “Higher for longer” interest rates and a firm dollar

Silver and gold don’t pay interest. When bonds pay more, holding metal costs you the interest you could have earned elsewhere. Analysts quoted by CNBC-TV18 and PTI say elevated US bond yields and a stronger dollar have repeatedly capped any recovery.

3. Forced selling after the AI-stock wobble

This is the surprise factor. Moneycontrol noted that the latest fall looked driven by broad liquidation more than rate expectations: as AI and technology shares slid, investors likely sold precious metals to meet margin calls. In other words, some people sold silver not because they stopped believing in it, but because they needed cash fast. It’s a reminder of how linked markets have become, from India’s own AI-factory build-out to the metals in your locker.

4. Industrial demand worries

Silver isn’t only jewellery and coins; it’s also used widely in industry. That’s why it usually swings harder than gold. Pranav Mer of JM Financial Services told PTI that silver’s fall reflects weakness across industrial metals, plus softer demand as some industries look for alternatives or use less silver because prices had become so high.

5. It rose too far, too fast

A 170% jump in a single year leaves a lot of profit on the table. When the mood turns, traders rush to lock in gains, and falls become steep. That’s the “silver price crash reason” many searchers are missing: big rallies often come with big corrections.

What could move silver this week

All eyes are on the US Federal Reserve’s policy meeting on 27–28 October. LKP Securities’ Jateen Trivedi told PTI that a hawkish stance could lift the dollar and yields and add pressure, while a less hawkish tone could trigger short covering and some relief. US inflation data, third-quarter GDP and decisions from the European Central Bank and Bank of Japan are also on the radar this week. Treat any daily move as noise unless you’re a trader.

Should I buy silver now or wait?

Honest answer: no one knows where the bottom is, including experts. Some see a floor near current levels; others warn of more downside. Instead of guessing, use this five-step check:

1. Decide why you’re buying. A Dhanteras coin or anklets for a wedding is a consumption purchase. Buy what you need and don’t stress about timing. An investment is different: it needs a plan.
2. Get your basics in place first. Silver is volatile, so it shouldn’t be your emergency fund. Keep a cash buffer and clear costly debt before chasing a dip. Small habits, like cutting your monthly grocery bill, can free up money without risk.
3. Buy in parts, not all at once. Split your budget into three or four purchases spread over weeks. If prices keep falling, you average down. If they bounce, you’ve already got some.
4. Keep it a small slice. A metal that can halve from its peak should be a supporting player in your savings, not the lead.
5. Count every cost. GST, making charges and the buy-sell gap can wipe out a small price gain. Run the numbers first, the way you would for any big money decision.

Physical silver vs silver ETF vs digital silver: costs and tax

How you buy matters as much as when. Here’s how the main options compare for an ordinary investor (based on Mint, Nippon India Mutual Fund and current tax rules):

Option	Upfront cost	Long-term after	Tax on gains
Coins, bars, jewellery	3% GST + making charges	24 months	12.5% (long term); slab rate before
Silver ETF (demat)	No GST on units; brokerage + fund expenses	12 months	12.5% (long term); slab rate before
Silver fund of funds	No demat needed; fund expenses	24 months	12.5% (long term); slab rate before
Digital silver on apps	3% GST + buy-sell spread	24 months	12.5% (long term); slab rate before

Silver ETF taxation in India, simply put

Sell a silver ETF within 12 months and the gain is added to your income and taxed at your slab rate. Hold it longer than 12 months and the gain is taxed at 12.5% without indexation, plus surcharge and cess. The ₹1.25 lakh yearly exemption for equity gains does not apply. Silver utensils for household use are generally not treated as capital assets, Mint notes.

A word on digital silver

Buying silver for a few rupees on an app is easy, but it isn’t a SEBI-regulated security. SEBI has already cautioned that digital gold products sit outside its regulation, and the same logic applies to digital silver. If you want a regulated, low-cost route, an ETF is usually cleaner.

How to check silver purity before you pay

Since 1 September 2025, the Bureau of Indian Standards (BIS) has run a revised, HUID-based hallmarking scheme for silver jewellery and articles. Hallmarking for silver is still voluntary, but any piece that is hallmarked must carry a HUID, according to PIB.

• Look for three marks: the BIS mark with the word “SILVER”, the purity grade, and a six-digit alphanumeric HUID.
• Know the grades: 800, 835, 925, 958, 970, 990 and 999 (999 is the purest).
• Verify it: enter the HUID in the free BIS Care app to see the purity, article type and jeweller details.
• Keep the bill: an invoice showing weight, purity and charges makes resale far easier.

FAQ

Why is silver price falling today in India?

Indian prices track global rates. High crude oil, expectations of high US interest rates, a firm dollar, margin-call selling linked to an AI-stock sell-off and softer industrial demand have all pushed silver down.

Will silver price go up again?

Nobody can say for sure. Some banks and analysts expect a recovery over the longer term, but they also warn of short-term swings. Plan for both outcomes rather than betting on one.

Is silver better than gold right now?

Silver is cheaper per gram but far more volatile, as this fall shows. Gold has historically been steadier. Many people hold a little of both instead of picking a winner.

Which is the safest way to invest in silver?

For investing, a SEBI-regulated silver ETF or fund of funds avoids GST, storage and purity worries. For jewellery or gifting, buy HUID-hallmarked pieces and keep the invoice.

The takeaway

Silver isn’t falling for one mysterious reason. It’s a mix of costly oil, sticky interest rates, forced selling and a hangover from a huge 2025 rally. A lower price can be a chance, but only if you buy in parts, keep it small and choose the right form. For more explainers like this, browse our Business section or see what’s on our Trending page.

This article is for general information only and isn’t financial or tax advice. Prices change quickly; please speak to a SEBI-registered adviser or a tax professional before investing.

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• Buying Gold This Dhanteras? The Hidden Costs of Jewellery, Digital Gold and ETFs (and How to Choose)
• Family Spends ₹50 Lakh on Son’s Canada Degree, Now He Saves Less Than He Would Have in India
• 25 Ways to Make Money Online and Offline

Sources

• Mint: Silver crashes ₹56,000/kg from August peak; what’s driving the sell-off
• Business Standard (PTI): Gold, silver face fresh test as oil surge puts Fed decision in focus
• CNBC-TV18: Gold, silver recover slightly after sell-off; what to watch this week
• Moneycontrol: Commodities on edge as oil surges and the Fed takes centre stage
• Mint: How silver ETFs, FoFs, jewellery and utensils are taxed
• Nippon India Mutual Fund: Silver ETF taxation
• PIB: HUID-based hallmarking for silver from 1 September 2025
• PIB: Mandatory HUID for hallmarked silver jewellery and artefacts
• SEBI: Caution to public regarding dealing in “Digital Gold” (Nov 2025)