Silver prices crash 8.7% in a day; what's happening?
Silver just took its biggest single-day tumble since 2020, dropping 8.7% on December 29 from a record $83.62 per ounce.
Prices bounced back a bit, rising to $73.46 the next day, but there was still plenty of volatility.
Even with these swings, silver is up a huge 150% for the year.
Silver prices in India: A quick look
On December 30, silver rates in India hit ₹257.90 per gram (or ₹2,57,900 per kilo).
Chennai, Hyderabad, and Kerala saw slightly higher rates at ₹280.90 per 10gm (₹2,80,900/kg), while other big cities like Mumbai and Delhi matched the national average.
Why did prices crash?
The sudden dip came as investors locked in profits after months of gains fueled by global rate cuts and strong demand for silver as an investment option.
Progress in US-Ukraine peace talks also calmed markets and reduced demand for safe-haven assets like silver and gold (which fell by 4.4%).
Plus, the Chicago Mercantile Exchange hiked trading margins for March futures—prompting even more selling.