In a stunning reversal that shattered a nine-month winning streak, silver prices suffered a historic collapse on Friday, January 30, 2026.
The “white metal” plunged as much as 31% to 37% in international markets, hitting an intraday low near $79.30 per ounce after touching a record peak of $121.64 just 24 hours earlier. In India, silver futures on the MCX crashed by a record ₹1.28 lakh per kg, marking the biggest single-day decline in modern commodity history.
1. The “Warsh Shock”: Why Silver Collapsed
The primary catalyst for the crash was the announcement that President Donald Trump would nominate Kevin Warsh as the next Chair of the Federal Reserve.
- The Hawkish Pivot: Warsh is widely viewed as a monetary “hawk” who favors tighter policy and a smaller Fed balance sheet. This signaled an end to the “easy money” era that had fueled silver’s parabolic rise.
- Resurgent Dollar: The US Dollar Index (DXY) saw its strongest intraday surge in four years as traders repriced expectations for fewer interest rate cuts in 2026.
- Safe-Haven Exit: A tentative deal between the White House and Senate Democrats to avoid a U.S. government shutdown further reduced the demand for silver as a “crisis hedge.”
2. The MCX “Liquidity Wipeout”
In India, the crash was even more violent due to extreme leverage and the triggering of “stop-loss” orders.
| Metric | Jan 29 (Record High) | Jan 30 (Intraday Low) | Total Drop |
| Price (per kg) | ₹4,20,048 | ₹2,91,925 | ₹1,28,123 |
| Percentage | — | -27.1% | Biggest Ever |
The metal hit its 15% lower circuit almost immediately upon the global sell-off, leaving many retail traders unable to exit their positions before prices slid further.
3. Biggest Drop in 46 Years?
The 31%+ decline on January 30 is being compared to the infamous “Silver Thursday” of March 27, 1980, when the Hunt Brothers’ attempt to corner the silver market collapsed.
- 1980 vs. 2026: While the 1980 crash was caused by regulatory margin changes, the 2026 crash was a “macro-liquidity event” sparked by the repositioning of the world’s most powerful central bank.
- ETF Exodus: Global silver ETFs saw their largest single-day outflow since 2011, with funds like iShares Silver Trust (SLV) and Nippon India Silver ETF dropping between 14% and 24%.
4. Technical Outlook: Support at $79?
Despite the $6 trillion wipeout in combined gold and silver market cap, some analysts argue the “froth” has finally been cleared.
- Oversold Territory: Momentum indicators, which were at “preposterous” overbought levels on Jan 29, have now swung to the extreme opposite.
- The New Base: Experts at Prithvi Finmart and Enrich Money suggest that the ₹2.90 lakh to ₹3.10 lakh zone on the MCX (approx. $79 – $83 internationally) will serve as a critical long-term floor.
Conclusion: A Brutal Reality Check
The January 30 crash serves as a reminder that silver is the most volatile of all major assets. For the “every man and his dog” who rushed for the exit, the losses were devastating. However, for long-term industrial investors, the correction provides a more realistic entry point for a metal that remains in a structural supply deficit. As the Union Budget arrives on February 1, the question is no longer how high silver can go, but how quickly it can stabilize after its most violent day in nearly half a century.
