Unlike gold, which enjoys diversified demand across geographies and investor classes, silver is far more exposed to disruptions in Asian participation, particularly from China. A much larger share of global silver demand is tied to industrial activity, and China is the world’s largest consumer of silver for industrial applications, including solar photovoltaic panels, electronics, electrical components and electric vehicles. This diversified demand base helps cushion gold prices during holiday periods, whereas silver lacks the same stabilising support. Silver frequently weakens or trades erratically during the Lunar New Year window, before stabilising once Chinese markets reopen and industrial demand resumes. Also Read | Silver price recovers on MCX amid thin trade even as US Fed minutes lift dollarLower interest rates typically benefit non-yielding assets such as silver, but uncertainty around the Fed’s timing has added to near-term volatility.

Source: Mint February 19, 2026 15:33 UTC