Silver prices in India have experienced a dramatic decline, dropping from a peak of ₹4.39 lakh per kilogram to below ₹2.40 lakh in just three months, effectively erasing all gains for the year 2026. Currently trading at approximately ₹2.38 lakh per kilogram, the market has reacted to a combination of factors including rising geopolitical tensions in West Asia, a sharp increase in crude oil prices, and a stronger US dollar, which has dampened demand for non-yielding assets like silver. This sell-off has led to a significant profit booking among investors, as many sought to cut risk amid heightened volatility. Despite this correction, the structural outlook for silver remains positive due to strong industrial demand, which accounts for over 60% of total consumption, and a persistent supply deficit that has lasted for six years. Analysts from Tata Mutual Fund suggest that the current price drop could present a buying opportunity, as corrections after extended rallies are typical and do not undermine the long-term bullish outlook for precious metals. They emphasize that while silver has faced recent pressure, the overall demand and supply dynamics continue to support its value over the medium to long term.