Silver Crashes ₹10,000 on MCX; Experts Blame Slowing Demand & Rebalancing

• Silver prices plummeted by up to ₹10,000 on MCX, with March 2026 futures dropping to ₹2,40,605 per kg.
• The sharp decline is attributed to the annual rebalancing of major commodity indices like the Bloomberg Commodity Index.
• Passive funds reduced silver positions to adjust portfolios according to new weightages, contributing to selling pressure.
• HSBC warns the rally is unsustainable due to weakening industrial and jewelry demand, despite a higher 2026 forecast.
• Increasing supply from mine production and recycling, coupled with a decreasing supply deficit, could limit long-term price rallies.

Why It Matters: Silver faces significant volatility and price correction due to rebalancing, weak demand, and rising supply.