In a stunning reversal that has shocked the bullion market, silver prices in India have plummeted by over ₹1,07,000 per kg just days after touching a historic lifetime high of ₹4.20 lakh. As of today the "white metal" is trading with extreme volatility as the nation awaits Finance Minister Nirmala Sitharaman’s presentation of Union Budget 2026.
The crash marks the worst single-day fall in MCX history, dragging silver back below the psychological ₹3 lakh mark in futures trading, while retail rates across major cities have corrected by ₹20,000 to ₹45,000 per kg in a single session.
City-Wise Silver Rates on February 1, 2026
Retail prices have seen a massive uniform dip across the country, though southern cities continue to trade at a slight variation due to local taxes and demand.
| City | Price per kg (Today) | Change from Yesterday |
| Mumbai | ₹3,50,000 | ▼ ₹45,000 |
| Delhi | ₹3,50,000 | ▼ ₹45,000 |
| Bengaluru | ₹3,50,000 | ▼ ₹45,000 |
| Chennai | ₹3,20,000 | ▼ ₹85,000 |
| Hyderabad | ₹3,20,000 | ▼ ₹85,000 |
Note: Prices are inclusive of GST and local levies where applicable.
Why did Silver Crash?
The "perfect storm" that triggered this massive wipeout includes:
- The "Warsh" Effect: The nomination of Kevin Warsh as the new U.S. Fed Chair strengthened the Dollar, making precious metals more expensive and less attractive to investors.
- Margin Hikes: The CME Group and MCX raised margin requirements for silver trading (up to 15%), forcing leveraged speculators to dump their positions.
- Budget Jitters: Investors are aggressively booking profits ahead of today’s Budget 2026, fearing a potential hike in import duties to curb India’s widening trade deficit.
Will Budget 2026 Revive the Rally?
All eyes are on the Finance Minister’s speech at 11:00 AM today. The market is split on two scenarios:
- The Duty Cut (Bullish): If the government slashes import duty from the current 6%–7.5% to 4%–5%, it could trigger a fresh wave of retail buying, potentially reviving the rally.
- The Duty Hike (Bearish): Conversely, if the government raises duties to control the import bill, domestic prices might spike temporarily, but long-term demand could be dampened by the increased cost.
Analyst View: "Silver was in a severely overbought zone after a 170% rally last year. While today's crash is painful for late entrants, it has removed the 'froth' from the market. The Budget will decide if we stay at these levels or head back toward ₹4 lakh," says a senior commodity analyst.
