The price of gold and silver has skyrocketed Image Credit source: ai generated
There has been chaos in the bullion market for the last few days. There is only one question on everyone’s mind, is now the right time to buy gold and silver or should one sell the old one and leave? Actually, the phones of jewelers are constantly ringing. The reason is such an earthquake in the prices of gold and silver which has hardly been seen in recent years. While these precious metals filled the pockets of investors in the year 2025, the beginning of February 2026 has shocked many people. Last year, gold had given a return of 70 percent and silver had given a surprising return of 170 percent. But at the end of January and the first week of February, the tables turned completely. Let us understand why there is this turmoil in the market.
Those 3 days that changed the picture
If we want to understand the movement of the market, we will have to step back a little. January 29, 2026 was the date when these metals were at their highest level in history. The price of gold on MCX was touching Rs 1.93 lakh per 10 grams, while silver had gained wings and reached Rs 4.20 lakh per kg. Copper was also not lagging behind and was trading at Rs 1480. Investors felt that this boom would continue further. You can estimate the speed of silver from the fact that it took only 10 days to reach the figure of Rs 3 lakh to Rs 4 lakh.
But everything changed on the morning of 30 January. The prices took a U-turn and the market came crashing down. There was a continuous decline for the next three days, which put new investors off. Although on February 2, the market tried to recover a bit, feeling that maybe good days would return, but this happiness proved to be a guest of only two days and the prices fell again.
Investors lost their sleep in 8 days
If we look at the figures, the story of the last 8 days is quite scary. Compared to the peak of January 29, the shine of gold and silver has faded. In just over a week, gold fell from Rs 1.93 lakh to around Rs 1.40 lakh. The condition of silver became even worse; It fell from Rs 4.20 lakh to around Rs 2.25 lakh. That means the price of silver reduced to almost half.
When the market closed on Friday, gold was at Rs 1.55 lakh and silver at Rs 2.49 lakh. If we look at it in percentage, within these 8 days gold has fallen by about 23 percent, while silver has registered a huge fall of about 46 percent. Copper also disappointed and it declined by about 18 percent. The portfolios of those who had bought at the peak have suffered a big blow.
Why did the market fall?
Two main reasons are believed to be behind this. The first is profit booking. When prices went up so rapidly, old investors started selling their holdings, which put pressure on the market. The second and biggest reason is the strengthening of the US dollar in the international market.
When the dollar strengthens, it becomes expensive for countries with other currencies to buy gold and silver, which reduces demand. Apart from this, the appointment of a new chief in the Federal Reserve Bank of America and the decision by MCX to increase the margin (deposit amount for trading) also added fuel to the fire. Due to increase in margins, it became difficult for speculators and small traders to remain in the market, which further increased the selling.
Is it money or opportunity that is stuck?
Leading market analysts believe that it would not be right to rush now. JP Morgan experts have warned that the current price of silver is still very high and it may fall further in times of stress. However, long-term fundamentals still appear strong.
Experts advise that until the market becomes stable, it would be wise to stay away. If you want to invest, then invest in installments (like SIP) instead of investing all the money at once. This method can protect you from the risk of market fluctuations to a great extent.