In a major market shift ahead of the festive season, silver prices witnessed a sharp fall on Friday, October 23, dropping below the psychological mark of Rs 2,00,000 per kg on the Multi Commodity Exchange (MCX). Driven by global market corrections and long unwinding, the December silver futures contract fell over 1.7 per cent to trade around Rs 1,95,800 to Rs 1,96,170 per kg, giving domestic buyers a timely opportunity ahead of Dhanteras and Diwali. Earlier this year in January, silver price recorded an all-time high of Rs 4,20,048 per kg on the MCX due to a massive global supply squeezed and aggressive speculative buying. In Nagpur Sarafa Bazar, silver price has dropped to a level of Rs 1.99 lakh per kg (excluding 3 per cent GST) on October 23 2026. Its peak price in the city was Rs 4.11 lakh (excluding 3 per cent GST) in January 2026. Primary reasons for this sharp decline include a heavy sell-off in global technology and AI equities, which forced institutional investors to liquidate precious metals to cover losses elsewhere.

 

Additionally, elevated crude oil prices have stoked inflation fears, reinforcing expectations that central banks will maintain a high-interest-rate environment for longer, thereby dampening the appeal of non-yielding bullion. Moderating global manufacturing activity and a stronger US Dollar have further weighed on industrial demand for silver. Rajesh Rokde, Chairman of the All India Gem and Jewellery Domestic Council (GJC), said the sudden price dip offers substantial relief to consumers planning to purchase silver ornaments, coins, and utensils during the festivals. Festive shoppers in Nagpur, who were previously cautious due to soaring metal prices earlier in the year, now find a far more attractive entry point to buy traditional puja items, silver thalis, coins, and giftware customary for Dhanteras rituals. Furthermore, with gold prices staying elevated, silver serves as a practical, affordable alternative for budget-conscious buyers seeking durable silver jewelry and decorative artifacts. Local jewellers in Nagpur’s Sarafa Bazar report an immediate rise in footfall and advance inquiries following the price drop, anticipating strong sales volume as Diwali approaches.