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Silver Prices Slump As Market Expected To Turn Surplus In 2027
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News18•07-10-2026, 09:23
Silver Prices Slump As Market Expected To Turn Surplus In 2027
- •Silver prices have dropped by about 40 percent from their record high of Rs 4 lakh per kilogram reached earlier.
- •Experts predict that silver will be in surplus in 2027 after several years of shortage as production exceeds global demand.
- •Industrial demand from sectors like solar energy and electric vehicles is slowing down, notably with a 30 percent demand drop in China.
- •Commodity experts advise caution for investors since market surplus limits the scope for significant price increases next year.
Key Questions Answered
Silver is projected to become a surplus in 2027 because industrial and solar demand, particularly in China's market where demand decreased by 30 percent, are slowing down while mine production is continuously increasing.
Global silver prices started at $30 per ounce on January 1, 2025, surged to $121 per ounce by January 2026, dropped by about 65 percent to $57 per ounce in June, and currently trade between $60 and $65.
Commodity expert Anuj Gupta advises that investing in silver may not yield high returns next year because market surplus will likely keep global prices from increasing significantly.
