Core Viewpoint - Silver prices experienced a significant intraday reversal, dropping from $82.5 (~Rs 2,54,000) to $75 (~Rs 2,38,000), primarily due to profit-booking and a decrease in safe-haven demand following an extended rally [1][2]. Price Movement and Market Sentiment - Optimism regarding potential progress in Russia–Ukraine peace talks has reduced geopolitical risk premiums, leading to short-term liquidation in silver [2]. - Speculative traders have reduced long positions due to elevated price levels and silver's substantial 180% year-to-date gains [2]. - A slight recovery in the US dollar and bond yields has negatively impacted market sentiment, although the overall trend for silver remains structurally bullish [2]. Performance Comparison - Despite the recent dip, silver has outperformed most asset classes in 2025, achieving over 160% year-on-year growth, significantly surpassing gold's 70% increase [3]. Factors Driving Silver Prices - The sharp increase in silver prices has been attributed to robust industrial demand, ongoing supply constraints, its recent classification as a U.S. critical mineral, and increased investor interest driven by momentum buying [6]. Investment Channels - Investors are exploring various ways to participate in the silver market, including futures, ETFs, physical bars, and mining stocks [7]. - The largest marketplace for physical silver is London, where major banks like JPMorgan and HSBC store significant bullion reserves [8]. - Silver futures are actively traded on exchanges such as COMEX, MCX, and the Shanghai Futures Exchange, allowing speculation on future prices without physical delivery [9]. - ETFs, such as the iShares Silver Trust, have gained popularity among small investors, with the fund currently holding around 529 million ounces of silver valued at approximately $39 billion [10]. - Physical silver in the form of bars and coins remains a preferred choice for many retail investors, although it involves considerations of storage, purity, and liquidity [11]. - Shares of listed silver mining companies provide another investment route, influenced by both silver price movements and company-specific factors [12].