Experts say that while structural demand for silver remains strong, it is in a bubble zone at current levels. Silver’s opening in the international market on Monday will be crucial.
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The price of silver is currently 35% below its record high. Last Friday, January 30, 2026, gold, including silver, witnessed the sharpest decline in decades. The price of gold fell by more than 11% in the international market, while silver fell by more than 31% on COMEX. After the sharp decline, the price of silver is now down by about 35% from its record high of $121.755 per ounce. According to a livemint report, experts believe that silver still has more correction to go and large institutional investors may continue to book profits.
Reasons for the Sharp Fall in Silver
According to experts, the massive sell-off in silver was also due to a major macro-repricing in the market after US President Donald Trump nominated Kevin Warsh as the next Federal Reserve Chairman. They said that Warsh’s strict inflation policy and emphasis on Fed independence led to a strengthening of the dollar, increased real yields, and rapid unwinding of overleveraged positions in gold and silver. This led to a massive sell-off that wiped out billions of dollars in market capitalization.
CME Increases Margins on Gold and Silver
Anticipating a further decline in silver prices, SEBI-registered commodity expert Anuj Gupta said that the Chicago Mercantile Exchange (CME) has now increased margin money on both gold and silver, following copper. The CME has increased the margin on gold from 6% to 8%, while the margin on silver has been increased from 11% to 15%. This could further increase pressure on precious metals. The Indian jewelry sector has been hit doubly hard by high gold and silver prices and weak demand. It’s expected that import duties may be reduced in Budget 2026. If this happens, both domestic and global factors could prove negative for gold and silver prices.
A further 30% decline in silver is possible!
Is the silver rally over now? Experts believe that the opening of silver in the international market on Monday will be crucial. Experts believe that while structural demand for silver remains, silver is in a bubble zone at current levels. From here, silver could see a further decline of at least 30%. By the end of June 2026, the price of silver could fall to $50 per ounce. Meanwhile, the price of silver on MCX in India is currently around ₹2,92,000 per kg, which could fall to ₹2 lakh per kg by June 2026.
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