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Silver prices down 39% from record high: What's the reason?
02 Feb 2026

The silver prices on the Multi Commodity Exchange (MCX) have witnessed a major crash, falling by over 39% from their record high of ₹4,20,000.

The fall comes amid a strong dollar and higher CME margins coming into effect today.

Today, the price of silver on MCX fell by 4% to hit ₹2,55,652.

Gold prices also fell on MCX
Market response

Despite the crash on MCX, global markets showed signs of recovery with spot silver rising over 8% to $84.140 after a nearly 12% drop in early trade.

Gold prices also fell on MCX during today's session, extending losses after their biggest single-day fall in over a decade.

The price of gold on MCX fell by 1.5% to ₹1,40,000.

Precious metals surge last year
Market volatility

In the last year, precious metals have hit new highs, surprising even seasoned traders.

The surge peaked in January as investors flocked to gold and silver amid fears of geopolitical instability, weakening currencies and questions about Federal Reserve independence.

However, Friday's sharp selloff was triggered by US President Donald Trump's plan to nominate Kevin Warsh as the next Federal Reserve Chair.

Experts advise caution for silver investors
Investment strategy

The recent crash in silver has prompted market experts to advise investors to temper their expectations and avoid reactive decisions.

Jateen Trivedi, VP Research Analyst at LKP Securities, said that silver is tipped to remain more volatile than gold in the near term with the potential for sharp price movements.

He advised investors to take a cautious approach and observe price behavior closely before making any new positions until stability becomes clearer.