Silver prices took a dive on Thursday, falling by Rs 10,000 during trading hours. The March 2026 futures on MCX dropped from Wednesday’s closing of Rs 2,50,605 per kg to Rs 2,40,605, before settling at Rs 2,43,911 by midday. This sharp decline comes after December’s record high of $83.60 per ounce.The steep price correction hinted at growing instability in precious metals markets. By noon, silver was trading down 2.67 per cent from its previous close, showing just how quickly market sentiment can shift.HSBC has updated its outlook for silver, painting a picture of gradual price decline over the coming years, as reported by ET. While they’ve raised their 2026 average price forecast to $68.25 per ounce, they expect prices to fall to $57.00 in 2027 and further to $47.00 by 2029.The bank pointed to several reasons for their stance. Demand in industry is weakening, and jewelry purchasers are turning away in large numbers, being put off by prices that are too steep. While silver demand has a massive deficit of 230 million ounces in 2025, it is set to decrease to 140 million ounces in 2026 and only 59 million ounces in 2027.Mining production is also seeing an increase due to enhanced recycling and byproducts. Though gold is a constant support for safe-haven assets, it looks like the consumption from industry and jewelry for silver is slowing down.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
