Silver Rate In India Crash First Time In 5 Days, 1Kg Silver Drops After Rs 38,000 Surge; Buy Time In Silver?

Silver rate in India witnessed their first crash in first day on January 22, 2026. 1Kg silver price which rallied by a whopping Rs 38,000 in 5 days, eventually corrected by Rs 5,000 on Thursday. That being said, 1Kg silver price has pulled back from their all-time high of Rs 3.30 lakh which was recorded yesterday. A similar trend is recorded in gold rates as well. However, despite the latest fall, silver still outperforms gold.

The major reason why silver prices pulled back is the easing tensions between US and European Union over Greenland. US President Donald Trump announced to withdraw the new harsher tariffs on eight EU countries. He also declared that US military will not use force to capture Greenland, but instead a fresh resolve over the Artic island is being discussed.

Silver Rates In India:

1Kg silver fell by Rs 5,000 to Rs 3.25 lakh, while 100 grams and 10 grams silver rates dropped by Rs 500 and Rs 50 to Rs 32,500 and Rs 3,250 respectively. The price of 8 grams silver is at Rs 2,600, which is down by Rs 40. While the cheapest silver is priced at Rs 325 per 1 gram, down by Rs 5.

However, in cities like Chennai, Hyderabad and Kerala, 1Kg silver is available at a higher price to Rs 3.40 lakh.

From January 17th to 21st, 1Kg silver price gained by a whopping Rs 38,000. Yesterday, silver recorded its highest ever level of Rs 3.30 lakh.

Despite this, silver still gives nearly 36.6% returns in January 2026 so far, which is better than gold who has gained by nearly 14.3%.

MCX Silver Price:

After the closing bell, MCX silver futures with February 2026 expiry, ended at Rs 3,12,677 per 1Kg, registering a massive decline of Rs 10,286 or 3.2%. Meanwhile, MCX silver futures with March 2026 expiry, plunged by Rs 10,352 or 3.3% to end at Rs 3,08,140 per 1Kg.

According to Aamir Makda Commodity & Currency Analyst, Choice Broking, Silver's rapid descent-dropping nearly 8% from its record peak-underscores its role as a high-velocity gauge of global risk. The sudden 'Davos De-escalation,' marked by the withdrawal of tariff threats against European allies and a new NATO framework for the Arctic, has punctured the geopolitical bubble that drove the white metal to $95. While industrial demand for AI and green tech remains a long-term floor, the immediate evaporation of the 'trade war premium' has triggered a massive wave of profit-taking as investors rotate back into a surging equity market.

Spot Silver Price:

Silver hovered around $94 per ounce on Thursday, but held below record highs as US President Donald Trump's latest statements eased market fears of a deeper geopolitical and trade dispute over Greenland, as per Trading Economics.

Silver Prices Prediction:

In Makda's opinion, MCX Silver March contract has reversed sharply, made a low of 305,753 in today's session. This correction may continue as price is still far from its immediate crucial support of 20-DEMA level placed at 272,150. Also, Daily SAR is currently placed at 274,300.

He added, "In previous bull run, we have observed a decline in OI levels which signifies a Long unwinding by traders in Silver. Along with that, we have observed a RSI divergence in Daily chart, which is a classic "Red flag" for building any fresh buying. In our view, this is not a right time to buy Silver at this moment as this fall may continue. If price stables over support levels, then traders may consider it as a "Buy-on-dips"."

Looking at OI levels, Makda added, "we can observe a OI decline to 9650 lots so far. Previously, we have observed a continues Long unwinding in bull run since the beginning of the December,2025. The decline in OI levels signifies there is no interest coming up for Long position with perspective to expiry from traders."

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.