As if to add to that, silver prices collapsed completely in one day today, in a miraculous turnaround for precious metals. The white metal tanked by a jaw-dropping ₹20,000 per kilogram in early trade, as the excitement that followed the India-US trade landmark flipped investor appetite from safe-haven assets to the high-flying equity markets. The crash came after President Donald Trump had announced reducing reciprocal tariffs down to 18%, which had sent the Sensex up by 4,200 points and led to a massive liquidation of the bullion market.
City-Wise Silver Rates (Per KG) – February 3, 2026
The ripple effect reverberated throughout all major Indian bullion centres, and prices plummeted from last week's peaks:
| City | Silver Price (per KG) | Today's Fall |
| Delhi | ₹2,32,400 | ▼ ₹20,000 |
| Mumbai | ₹2,32,400 | ▼ ₹20,000 |
| Bengaluru | ₹2,34,500 | ▼ ₹19,500 |
| Chennai | ₹2,35,000 | ▼ ₹19,000 |
| Hyderabad | ₹2,35,000 | ▼ ₹19,000 |
Why Did Silver Prices Plummet Today?
This “Silver Meltdown,” according to market experts, derives from a “Perfect Storm” of three major dynamics:
- Equity Market Overflowing: After gains upwards of 1,200 points in the wake of the India–US trade agreement institutional capital is moving (the Nifty now at 2.55 times as much higher to investments in high-growth sectors, such as IT, Textiles and Auto where they are growing so strong, not just to defensive assets such as silver and gold as they are now a part of the global economy.
- Removal of the “Oil Overhang”: The reversal of the 25% Russian oil penalty on India, which had strengthened the Indian Rupee since last week, has boosted prices on the metal. As silver is a commodity traded worldwide in USD, a rising Rupee renders the metal substantially cheaper for domestic buyers.
- Margin Calls on MCX: These sharp price declines brought about "stop-losses" and margin calls for a fair number of retail traders who had previously "Long" levels on silver. The forced liquidation had further escalated the downward pressure on the Multi Commodity Exchange (MCX).
Market sentiment: A correction or a crash?
Although down ₹20,000, the drop is largely blamed on some analysts seeing it as an essential "cool-off" time. Silver has jumped parabolic over the last 12 months, and today’s correction returns it back to more sustainable valuation levels. “The deal is deflationary for commodities but inflationary for industrial growth in the core,” says an analyst from HDFC Securities. “Silver as an ‘investment’ may be in pain now, but its ‘industrial’ demand will likely hit high as the trade deal paves the road for entry into cheaper electronics and solar manufacturing across India.”
“Traders are encouraged to monitor the support level to ₹2,30,000 closely. If such a peak in equity rally continues to dominate the headlines, this may put further downward pressure on silver before it stabilizes. This huge drop for customers buying retail jewelry opens up a rare window of opportunity as the next wedding season gets underway.
