This was being called the 'new gold'. So what went wrong?

Published 1 July 2026 · finance

Experts are divided on whether the strong bull run in silver prices is over. (AI image) COMEX Silver has declined 37% since the US-Iran war

Experts are divided on whether the strong bull run in silver prices is over. (AI image) COMEX Silver has declined 37% since the US-Iran war and is down 52% from its all-time high. In domestic markets. MCX Silver has corrected 20% since the war and 46% from its all-time high. Where does the current geopolitical and economic situation leave silver and gold prices? Is the worst over for silver prices or will prices correct further? What factors will drive silver prices in the coming months and what strategy should investors adopt? Let’s take a look Why has silver crashed - and why more than gold? Silver had rallied nearly 350% from around Rs 95,000 to Rs 4,00,000 between 2025 and early 2026, making it one of the strongest-performing commodities. Experts feel that such an exceptional rally naturally invited aggressive profit booking! Silver prices rose sharply in 2025, but have dropped since then Gold prices rallied strongly till January 2026. Since then, they have fallen, but the dip is not as sharp as silver. Silver: Is the bull run over & what should investors do? Maneesh Sharma says that although prices have declined by over $15 from above $70 to a low of $55.69 in the second half of the June month, a bounce back up to 61–63 $/Oz (CMP $58.80/Oz) cannot be ruled out in a short term perspective. This could translate to levels of Rs 2,32,500 – 2,34,000/kg. (CMP Rs. 2,26,300/kg.) on the higher side in MCX September futures contract. Why silver has fallen The Anand Rathi expert says silver is looking more attractive again after the correction because the earlier strong rally has now fully cooled down. From a peak of around $97.5 per ounce, silver has fallen to 58.81, and this move has removed a lot of the excess buying and over-optimism that had built up during the rally phase. She sees the market as more balanced now. Where are silver prices headed? Going forward, the US interest rate cycle and the direction of the US dollar will likely influence silver prices, acting as the biggest drivers in either direction. Industrial demand and geopolitical developments will continue to influence sentiment. A prolonged high-rate environment is likely to keep prices under pressure. (Disclaimer: Recommendations and views on the stock market, or any other asset classes or personal finance management tips given by experts and analysts are their own.

These opinions do not represent the views of The Times of India.) Silver's spectacular rally has given way to an equally dramatic correction, leaving investors wondering whether the bull run has merely paused or have prices already peaked. In fact in less than six months, international silver prices have crashed more than 50% since the peak seen in late January.In comparison, COMEX Gold has fallen 15% since the war and 27% from its all-time high, while MCX Gold is down 12% since the war and 22% from its peak. The deeper correction in silver prices stands in sharp contrast to that of gold. Interestingly, natural diamond prices are seeing a revival after three years. Reports suggest that solitaire prices are up 5-8%.Silver and gold prices rallied strongly in 2025, when the stock market was mostly volatile. But the crash in the precious metals comes at a time when the domestic stock markets are also down due to US-Iran conflict uncertainties, though Sensex has recovered recently due to dropping crude oil prices.Pranav Mer, Sr. Vice President, EBG - Commodity & Currency Research, JM Financial Services explains that silver’s parabolic rally ended towards the end of January 2026. The sharp correction was triggered by profit-booking/ liquidation due to margin hikes to curtail speculative activity. However, it again attempted a recovery and moved close to in the beginning of March 2026, but the attempt failed and prices reversed.1.⁠ ⁠The price correction was initially triggered by a corrective move in industrial metals, and demand destruction from the industrial side after prices spiked nearly 4-times in a span of 3-months and industries looked for alternatives.2.⁠ ⁠The beginning of the US-Iran war triggered fresh safe-haven demand for the US dollar and Treasuries (while gold moved in the inverse direction). There was an inverse correlation because the US was directly involved in the war.3.⁠ ⁠At the same time a corrective move was seen in the industrial metals as well. Silver accounts to nearly 50% in industrial usage + its precious metals appeal - it follows cues from industrial metals as well, especially copper.Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities explains that the initial decline before the war was largely profit booking after an extraordinary rally.“However, the post-war correction has been driven by a combination of higher interest rate expectations, a stronger US dollar, weaker investor participation, and liquidation across commodities,” he tells TOI.Commodity expert Maneesh Sharma blames speculative capital in silver investments for its sudden rise and equally sudden crash.“Silver’s massive rally before the conflict had seen a high volume of fast-moving speculative capital especially from fund houses in China & US entering into the commodity.