The prices of silver have taken a substantial hit, witnessing a crash in the commodity market. On Tuesday, silver futures on the MCX opened lower, plunging by nearly 5700 rupees per kilogram compared to previous closing rates. Alongside silver, gold prices also fell sharply by 2000 rupees per ten grams, indicating a broader downturn in precious metals. This downward trend has not only impacted the physical metals market but has also cast a pall over Silver ETFs, leading to substantial losses across various funds.

All major Silver ETFs are currently trading in the red, reflecting the bearish sentiment in the market. Notable funds like Tata Silver Exchange Fund, Nippon India Silver ETF, and others reported initial trading drops of approximately 1% to 2%. This decline comes amidst a broader market volatility where the sentiment on precious metals is shaky, causing investors to reassess their positions in these commodity-focused ETFs. Despite the turmoil in silver ETFs, the impact on Gold ETFs has been mildly contained, although a slight effect has been noted.

The current scenario serves as a reminder of the inherent risks associated with investing in commodities, particularly precious metals which are often seen as safe havens during economic uncertainty. The recent crash may lead to a re-evaluation of investment strategies by both individual and institutional investors, as they navigate through the fluctuating market conditions that characterize gold and silver trading.