Silver prices experienced a significant correction, closing down by 6.1% at Rs 2,35,701 as investors took the opportunity to realize profits ahead of the year-end following an exceptional rally. In spite of the downturn, silver has experienced a remarkable increase of over 180% in 2025, significantly surpassing gold and achieving its most robust annual performance to date. The metal achieved several significant milestones throughout the year, bolstered by its designation as a critical mineral in the US, ongoing supply constraints, persistently low inventories, and strong demand from both industrial and investment sectors.
Ongoing geopolitical risks continued to capture attention, as the US indicated potential further measures against Iran’s nuclear and missile initiatives while also announcing operations in Venezuela, contributing to short-term volatility. Fundamental support persists due to limited global supply. Chinese silver inventories have reached their lowest levels in a decade, following record exports that surpassed 660 tonnes in October.
Concurrently, stocks associated with the Shanghai Futures Exchange are at their most diminished since 2015. Liquidity outside China continues to be constrained, characterized by high borrowing costs in London, even in the face of robust inflows. The CME Group has increased margin requirements for March 2026 silver futures to approximately $30,000, following previous adjustments, as part of its strategy to mitigate speculative activity after a series of record highs.
From a technical perspective, the market is experiencing new selling pressure, as evidenced by a 4.02% increase in open interest to Rs 13,244, coinciding with a significant price drop to Rs 15,311. Silver currently faces immediate support at Rs 2,31,290; a decline below this level could see prices testing Rs 2,26,875. On the upside, resistance is observed at Rs 2,41,060, and a movement beyond this threshold could pave the way toward Rs 2,46,415.