From Record Highs to Sharp 20% ETF Falls: What’s Really Happening to Silver?

- Silver jumped to INR 3.34 lakh/kg on MCX, but fell 4% after global tensions eased. - ETF prices crashed because Indian silver had become overhyped due to Budget rumors. - Long-term demand will still remain strong for silver, say experts.

Adepu Bindu

22 Jan 2026 — 4 min read

From Record Highs to Sharp 20% ETF Falls: What’s Really Happening to Silver?

Gold and silver have set new all-time highs recently. Silver price on MCX (Multi-Commodity Exchange) jumped over 3% in one day. Well, that's about INR 11,000 more, making silver reach as high as INR 3,34,840 per kg. On the other hand, Gold also shot up 5%, touching a record INR 1,58,339 per 10 grams. Internationally, the price of gold rose by 2.1% and silver by 0.1%. However, as geopolitical tensions cooled (Trump vs. Greenland, Denmark, and Europe), silver ETFs crashed by 20% on Thursday, January 22.

Trump’s tariff threats have previously pushed investors toward safe-haven assets such as silver and gold, and they shone brighter. However, the new update seems to pull the shine off assets. So, what is happening to Silver right now? Has the rally just ended? For all who learn more.

Why Did Silver Prices Fall After Reaching Record High Price?

As a matter of fact, the silver price fell a bit, but silver ETFs crashed a lot. In India, prices for silver fell less compared to the global numbers (Indian silver price ≈ $107 per ounce vs. Global COMEX silver ≈ $94 per ounce). In fact, due to speculation that there could be an increase in import duty on silver, investors rushed to silver even faster. Right now, the prices globally have fallen because of two main reasons:

Firstly, the U.S. President Donald Trump backed off from his new tariff threats. At the same time, he also dropped talk of taking over Greenland by force. This eventually put pressure on stock markets. Secondly, the U.S. dollar strengthened, making silver costlier to buy for foreign buyers. And so the demand and prices both dropped.

Silver Price & ETF Movement – India vs Global

Item	Market / Exchange	Price / Level	Change	What It Means Simply
Silver Futures (India)	MCX	INR 305,753 per kg	▼ 4%	The actual silver price in India fell moderately
Silver (India – Peak Level)	MCX (earlier high)	~INR 335,000 per kg	—	About INR 30,000 higher than today
Silver Price (India – Peak)	MCX (in USD terms)	~$107 per ounce	—	Indian silver had become unusually expensive
Silver Price (Global)	COMEX (US)	~$94 per ounce	—	Normal global silver price
Price Gap (Premium)	India vs Global	~$13 per ounce extra	—	Shows how overhyped Indian silver had become
Tata Silver ETF	MCX	INR 25.56	▼ 24%	Biggest ETF crash
Edelweiss Silver ETF	NSE	Not mentioned	▼ 22%	Heavy selling
Mirae Asset Silver ETF	NSE	Not mentioned	▼ 22%	Heavy selling
360 ONE Silver ETF	NSE	Not mentioned	▼ 21%	Heavy selling
Nippon India Silver ETF	NSE	Not mentioned	▼ 20%	Heavy selling

Why Did Silver ETFs Fall Way More Than Silver Itself?

Indian silver prices (MCX) rose much faster than global silver prices (COMEX – US exchange). People in India were betting heavily that the government would increase import duties in the upcoming Union Budget. If that ever happens, silver in India will become more expensive. Therefore, the traders rushed to buy silver.

Expert Harshal Dasani explained that this move has pushed Indian silver into a huge premium. However, the premium was based on mere rumours and not an actual shortage. Once the speculation became clearer, the premium began to disappear. Due to the premium unwinding, the Silver ETFs fell harder. ETFs naturally react faster, so whether it's buying or panic selling, they drop quickly.

Is this Cool-off in Silver Long-Term?

No, and that's a problem. There's a huge demand, mines aren't closely producing enough silver. Starting on January 1, China (the largest exporter of silver) already limited exports due to market hype. Silver recycling is also limited, making the supply super tight.

More than half of all silver demand now comes from industries like:

Solar panels
Electric vehicles (EVs)
Data centres
Electrification projects
Electronics
AI infrastructure

Should You Buy Physical Silver or Silver ETFs?

According to market expert Akshat Garg, it is better to start with ETFs. These are easier to buy and sell, with no shortage issues, and they fit well into a diversified portfolio. For people who already hold the ETFs, he suggests not to sell now. The silver will reach new highs. He advises keeping at least 5% to 10% of your total investments in silver ETFs and Gold ETFs.

Final Thoughts...

Silver is no longer just 'jewellery metal' anymore, it's becoming a critical 'tech metal.' The demand is evidently rising as central banks, tech companies, and investors increasingly turn to silver. The crash doesn’t define the long-term benefit of silver, as prices are still historically high. You can allocate 5–10% of your portfolio for silver and gold and not get too much into 'quick profits' as advised by the experts. For more updates on the same, keep in touch.