Silver Prices Tumble by ₹22,000 in 3 Days Ahead of New Year, Gold Down ₹5,000

Silver prices saw fluctuations starting after December 29, which continued on December 31, the last day of the year. Understand the reasons behind this.

As the year 2025 draws to a close, the shine of silver is beginning to fade. Today, the last day of 2025, silver has fallen below ₹18,700 per kg in intraday trading. Prior to this, significant fluctuations were observed in silver on December 29th, when it saw a drop of ₹21,000.

Silver Drops by ₹18,000 on the Last Day of the Year

Today, December 31st, MCX silver March futures are experiencing considerable volatility. Upon market opening, silver plummeted to ₹18,000. Silver futures hit an intraday low of ₹2,32,228 per kg. Currently, silver is trading around ₹2,37,000 per kg, down by ₹13,500.

Silver Becomes ₹22,000 Cheaper in 3 Days

The last three days of 2025 have witnessed significant turbulence in silver prices. On December 29th, the day silver saw major fluctuations, it also touched an all-time high of ₹2,54,174. However, it could not sustain this peak for long and dived to the ₹2,22,502 level. But, the very next day, Tuesday, December 30th, silver showed a remarkable recovery, touching a high of ₹2,51,360. This means a strong comeback of approximately ₹27,000 per kg from the closing price of ₹2,24,429 on December 29th. Then, on December 31st, i.e., today, silver has once again seen a sharp decline. Looking at these three days collectively, silver has fallen by ₹21,946, or approximately ₹22,000, from its record high on December 29th.

Gold Also ₹5,000 Cheaper

Unlike silver, gold prices have not seen such drastic fluctuations. Although MCX gold February futures have dropped by up to ₹1,500 per 10 grams. However, from December 29th until now, gold prices have only decreased by ₹600-650. It is worth noting that on December 26th, gold had set a record high of ₹1,40,465 per 10 grams, and prices have since fallen by up to ₹5,000 from that peak.

Why the Decline in Silver Prices?

There are some interesting reasons behind such a sharp fall in silver prices, which are distinct from geopolitical factors and industrial demands that have a long-term impact.

• In 2025, silver has given returns of approximately 150-180%. This is the most spectacular performance in any year. Now, as the year is ending, investors are booking profits, which is putting pressure on prices.
• CME Group (Global Commodity Exchange) increased the margin for silver futures by 13-14% at the end of December. This forced speculative traders to close their positions, leading to selling pressure and a rapid decline in silver prices. The exchange increased the margin around December 27th-29th, which is when we witnessed such a significant drop on December 29th.
• Trading activity remains low due to Christmas and New Year holidays, with major investors and institutions on leave, resulting in significantly reduced trading volumes. Therefore, with lower liquidity, even small orders can have a substantial impact on prices.