Physical bullion counters across major southern trading hubs have recorded a steep retreat in white metal valuations over less than a week. In Chennai and Hyderabad, silver prices surrendered Rs 50,000 per kilogram across a six-day stretch, culminating in another sharp markdown on February 18. During the session, one kilogram of silver dropped by Rs 5,000 in both cities, bringing the benchmark cost down to Rs 2.60 lakh. The identical pricing trend across these two southern hubs highlights the regional breadth of the correction.
Breakdown of Fresh Retail Rates by Denomination
The downward revision on February 18 extended across every traded retail denomination. In both Hyderabad and Chennai, a 100-gram lot lost Rs 500 to settle at Rs 26,000, while a 10-gram purchase eased by Rs 50 to trade at Rs 2,650. For smaller jewelry weights, an 8-gram unit declined by Rs 40 to Rs 2,080. Even the smallest single-gram measure shed Rs 5, settling at Rs 260 per gram. These uniform markdowns across all denominations reflect how lower wholesale spot quotes quickly filter down to local retail counters.
The Timeline of the Six-Day Sell-Off
The cumulative Rs 50,000 drop followed a sequence of volatile sessions beginning mid-month. Prior to the February 18 reduction, prices had held flat on February 17, but that pause came immediately after a severe Rs 15,000 decline on February 16. That sell-off had been preceded by two quiet sessions on February 14 and February 15 when quotes remained unchanged. However, the most damaging single-day retreat over the past ten days occurred on February 13, when one kilogram tumbled by Rs 20,000 in a single trading cycle. Adding up the losses between February 13 and February 18 reveals an aggregate drop of Rs 50,000 per kilogram.
Monthly Losses Approach 19 Percent
Taking a broader view of the past ten days, local silver trading has been characterized entirely by downward slumps or completely flat sessions. The last time buyers saw an upward move in Chennai and Hyderabad was on February 9, when rates climbed by Rs 15,000. Since that date, upward momentum has completely disappeared from the market. So far in February 2026, silver has plunged by nearly 19%, marking one of the swiftest multi-week contractions seen in recent trade.
Broad Commodity Sell-Off and Industrial Sentiment
Market observers link this prolonged pullback to broader financial and industrial crosscurrents. Aksha Kamboj, Vice President of the India Bullion & Jewellers Association (IBJA), noted that the silver market is facing a harsher downturn due to widespread selling pressure across commodities. Because silver inherently carries higher volatility than many peer assets, price reactions have become more pronounced under the dual impact of shifting investment demand and weaker industrial sentiment. While this selling pressure may persist in the immediate term, severe price pullbacks historically tend to draw buyers back into the physical market once conditions stabilize.
