Market Meltdown: Historic Crash in Gold & Silver! Silver Tanked by ₹1.29 Lakh, Gold Down ₹31,000
January 31, 2026 | Commodity Market Special Report
Today will be remembered as ‘Black Saturday’ in the history of the Indian Bullion Market. Just one day before the Union Budget 2026, gold and silver prices have delivered a massive shock to investors. The market, which was setting new records just yesterday, has collapsed like a house of cards.
The ₹863 Trillion Wipeout: How Much Money Vanished?
If we quantify this crash on a global scale, the numbers are terrifying. Based on estimates of global gold and silver reserves, this price collapse has wiped out an estimated ₹863 Lakh Crore ($9.6 Trillion) in investor wealth within just 48 hours. This isn’t just a market correction; it is a financial black hole that has swallowed fortunes overnight.
To put this magnitude into perspective, the total money lost in this crash is roughly 2.5 times the entire GDP of India. Even if you combined the total market value of tech giants like Apple, Microsoft, and Google, it would still not equal the wealth that evaporated from the bullion market in these two days. This scale of destruction highlights why this pre-budget crash is being termed a historic financial event.
The biggest question on every investor’s mind is: “Is this the right time to buy, or is the market about to fall further?”
Let’s analyze these numbers deeply.
1. Silver: A Massive 30% Crash
Silver has always been a ‘high voltage’ asset, but today’s drop has shocked everyone. If we look at the rates for 1 Kg of Silver:
- All-Time High: ₹4,20,000 per Kg
- Current Rate: ₹2,91,000 per Kg
- Total Loss: ▼ ₹1,29,000 per Kg
Analysis: The implications are clear—Silver has plummeted 30.71% from its peak. Financially speaking, when an asset falls more than 20%, it is considered a “Bear Market.” This drop in Silver is not a normal correction; it is panic selling. Institutional investors (FIIs) are pulling their money out and moving it to safer assets like bonds or currency.
2. Gold: A Major 17% Correction
Gold is traditionally considered a ‘Safe Haven’ (a secure investment), but even it couldn’t escape this storm. Let’s look at the rates for 10 Grams (1 Tola):
- All-Time High: ₹1,80,500 per 10g
- Current Rate: ₹1,49,000 per 10g
- Total Loss: ▼ ₹31,500 per 10g
Analysis: Gold has seen a decline of 17.45%. Compared to Silver, Gold has broken less, indicating that despite the panic, investors still have some faith in the yellow metal. After breaking the ₹1.80 Lakh level, coming down to ₹1.49 Lakh might be an opportunity for those looking to buy jewelry for weddings.
3 Major Reasons for This Crash:
- Budget 2026 Fear: The Union Budget is scheduled for tomorrow, February 1st. There are rumors in the market that the government might make significant changes to Import Duties, causing traders to square off (sell) their positions.
- Profit Booking: Gold and Silver had been rising continuously for the last 6 months. After reaching ₹4.2 Lakh (Silver) and ₹1.8 Lakh (Gold), big players started booking profits.
- Global Signals: A strengthening Dollar in the international market is historically bad for commodity prices.
Conclusion for Investors:
Experts advise: “Don’t catch a falling knife.”
- Wait & Watch: It would be wise to wait until the Budget speech concludes tomorrow.
- Buying Levels: If Silver finds support around ₹2.80 Lakh, it could be a good entry point for the long term.
