Indian silver prices took a brutal slide today, the MCX plunging 6% after an even deeper 10% slide in the previous session. The “white metal” has since tumbled from its historic highs in late January, leaving both investors and retail buyers to wonder what made the wild price spike come to pass so quickly.
What prompted the silver crash?
The severe correction is not a consequence of falling demand but of a combination of macroeconomic shifts and technical triggers: The “Warsh Shock”: For instance, Kevin Warsh's nomination to become the next U.S. Federal Reserve Chair has set a more hawkish tone for interest rates. His track record as an “inflation hawk” has lifted the U.S. Dollar, so dollar-denominated silver would become pricier for Indian buyers.
Easing Geopolitical Tensions: Bullion’s safe-haven potential weakened after reports that there might be U.S.-Iran negotiations on the Gulf states’ soil in Oman and a healthy phone call between U.S. President Donald Trump and Chinese President Xi Jinping.
Stricter Trading Rules
The MCX is tightening margin requirements (for silver to be 7% currently). This has forced many speculative traders to sell off their positions, hastening the price slump. Profit Booking: Silver surged towards a stunning peak reaching above ₹4.20 lakh/kg on January 29, and institutional and retail investors are aggressively locking in gains.
Silver Rates Today (February 6, 2026)
The retail market closely followed the futures crash, plunging ₹25,000/kg in one day
| City | Silver Price (Per 1 Kg) | Change from Yesterday |
| New Delhi | ₹2,75,000 | ▼ ₹25,000 |
| Mumbai | ₹2,75,000 | ▼ ₹25,000 |
| Bengaluru | ₹2,75,000 | ▼ ₹25,000 |
| Chennai | ₹2,99,900* | ▼ ₹20,000 |
| Hyderabad | ₹2,80,000 | ▼ ₹20,000 |
| Kolkata | ₹2,75,000 | ▼ ₹25,000 |
*Note: The prices are often above standard in Southern India, particularly Chennai where local demand is higher and tax assessments differ.
Market Outlook: Buy the Dip?
While the “paper market” is indeed going through a violent deleveraging, the industrial demand for silver, led by AI data centers; solar panels; and EVs, remains structurally sound, analysts say. As volatility will continue, prices may find a new floor near the ₹2.25 lakh – ₹2.35 lakh range before tamping down, according to experts at JP Morgan and local brokers.
