Silver Rate Today Falls 6% on MCX; Yet 2025 Marks a Historic Year for White Metal

As 2025 draws to a close, silver rate today witnessed a sharp pullback on MCX, but the white metal remains on track for a record-breaking annual performance. Despite Wednesday’s dip, silver has delivered an unprecedented rally this year, standing out as one of the most remarkable performances in the global metals market.

Market Performance: Short-Term Pullback Amid Long-Term Gains

On Wednesday, December 31, silver on MCX opened 6% lower at ₹2,35,952 per kg, marking a noticeable retreat from recent peaks. At the same time, MCX gold February futures edged down 0.75% to ₹1,35,644 per 10 grams.

The decline comes after a period of intense volatility:

• Prices soared to successive record highs during the final month of 2025.
• Investors booked profits after the blistering rally, causing a temporary dip in both silver and other precious metals.
• Global silver on COMEX slipped below $72 per ounce, hitting an intraday low of $71.97, down over 7% from Tuesday’s close.

This short-term correction, however, has done little to dim the white metal’s stellar yearly performance.

Silver’s Historic 2025 Rally

Even with the pullback, silver has surged 157% year-to-date, positioning itself for the strongest annual gain ever recorded. This year, silver outperformed gold and other precious metals, driven by a combination of global events and market dynamics:

• Interest rate cuts and expectations of further easing by the US Federal Reserve.
• Geopolitical tensions sustaining safe-haven demand.
• Robust central bank buying and rising inflows into exchange-traded funds (ETFs).
• Shifts in monetary policy expectations supporting precious metals.

The rally has been underpinned not only by market speculation but also by physical constraints in supply. Earlier in the year, the London silver market faced a full-blown squeeze as ETF inflows and exports to India sharply reduced inventories already at critically low levels.

Other Precious Metals Also Face Pressure

Silver wasn’t the only metal experiencing short-term pressure:

• Spot gold slipped 0.3% to $4,334.20 per ounce after reaching a record high of $4,549.71 per ounce in late December.
• Platinum fell 3.4% to $2,123.55 per ounce, though it still recorded a 135% gain for the year.
• Palladium dropped 1.6% to $1,584.67 per ounce but remained on track for a 74% annual gain, its best in nearly 15 years.

These moves highlight the broad-based volatility in the precious metals market as 2025 closed.

Supply Concerns and Physical Demand

Multiple factors drove silver’s outstanding performance in 2025:

• Industrial and investment demand outpaced available supply.
• Silver’s use in electronics, renewable energy, and other technology-driven applications steadily increased.
• Physical scarcity, amplified by exports to major consuming countries like India, tightened the market further.

Adding to supply-side pressures, China—the world’s second-largest silver producer—is set to impose export restrictions from January 1 via a state licensing mechanism. Although China produces silver largely as a by-product of industrial metals, even modest export limits could reduce global availability.

This tightening supply environment reinforces that silver’s rally in 2025 has been supported by real physical constraints, not just speculative buying.

Summary: Silver Rate Today and Year-End Outlook

As 2025 comes to a close, silver rate today reflects a minor correction, yet the broader narrative remains strong:

• Silver surged 157% in 2025, marking a historic annual gain.
• Short-term dips reflect profit-taking rather than a change in fundamentals.
• Supply constraints, robust industrial demand, and global monetary conditions sustained the rally.
• Other metals, including gold, platinum, and palladium, also posted impressive annual gains despite the recent declines.

While the day-to-day prices may fluctuate, silver’s journey through 2025 underscores its unique position as both a safe haven and an industrially essential metal. The year-end numbers tell a clear story: even after Wednesday’s drop, silver has had its best year ever, a performance that will be remembered by investors and market watchers alike.

Source: Livemint