Silver tanked by Rs 3,224, or 6%, to Rs 50,502 per kg in futures trade on Monday as speculators engaged in reducing their positions after prices of the precious metal tumbled by over 8% in the Asian region.
At the Multi Commodity Exchange, silver for delivery in December plunged by Rs 3,224, or 6%, to Rs 50,502 per kg, with a business turnover of 203 lots.
Similarly, the metal for delivery in far-month March declined by Rs 3,303, or 6%, to Rs 51,752 per kg, with a trade volume of 11 lots.
Analysts attributed the steep fall in silver prices in futures trade to a weakening trend in the Asian region on speculation that European governments will find it difficult to contain the region's debt crisis and reverse gains registered by the US dollar against the euro, eroding the demand for precious metals as an alternative investment.
Meanwhile, silver tumbled by 8.60% to $28.27 an ounce in the Asian region in early trade on Monday.