Silver prices have halved in 8 days, and gold and copper are also in trouble! Should we buy now, or will the price fall further?

The bullion market has been in turmoil for the past few days. Everyone's questioning: Is now the right time to buy gold and silver, or should we sell our old holdings and get out? Jewelers' phones are ringing constantly. 

The reason is a dramatic drop in gold and silver prices, a phenomenon rarely seen in recent years. While these precious metals filled investors' pockets in 2025, the beginning of February 2026 has stunned many. 

Gold returned 70% last year, and silver an astonishing 170%. However, the tide has turned in the end of January and the first week of February. Let's understand why this market turmoil has occurred.

Those 3 days that changed the picture

To understand the market's movement, we need to step back a bit. January 29, 2026, was the date when these metals reached their highest levels in history. Gold prices on the MCX touched ₹1.93 lakh per 10 grams, while silver had seemingly taken flight, reaching ₹4.20 lakh per kilogram. 

Copper was not far behind, trading at ₹1,480. Investors believed this rally would continue. You can gauge silver's momentum by the fact that it took just 10 days to reach ₹3 lakh to ₹4 lakh.

But everything changed on the morning of January 30th. Prices took a U-turn, and the market plummeted. The next three days saw a continuous decline, leaving novice investors in a tizzy. 

Although the market made a slight attempt to recover on February 2nd, giving rise to hopes that better days might return, this joy proved short-lived, and prices plummeted again.

Investors lost their sleep in 8 days

Looking at the data, the story of the last eight days is quite grim. Compared to the peak reached on January 29th, gold and silver have lost their sheen. In just over a week, gold has fallen from Rs 1.93 lakh to around Rs 1.40 lakh. 

Silver's condition has worsened even further; it has fallen from Rs 4.20 lakh to around Rs 2.25 lakh. This means that the price of silver has almost halved.

When the market closed on Friday, gold was at Rs 1.55 lakh and silver at Rs 2.49 lakh. In percentage terms, gold has fallen by nearly 23 percent in these eight days, while silver has seen a massive decline of nearly 46 percent. Copper also disappointed, falling by nearly 18 percent. Those who bought at the peak have suffered a major setback in their portfolios.

Why did the market fall?

Two major reasons are believed to be behind this. The first is profit-booking. When prices rose so rapidly, long-term investors began selling their holdings, putting pressure on the market. The second, and more significant, reason is the strengthening of the US dollar in the international market.

When the dollar strengthens, it becomes more expensive for countries with other currencies to purchase gold and silver, reducing demand. 

Furthermore, the appointment of a new chief at the US Federal Reserve Bank and MCX's decision to increase margins (deposits for trading) also added fuel to the fire. The increased margins made it difficult for speculators and small traders to remain in the market, further fueling the selling.

Is it stuck money or opportunity?

Leading market analysts believe it's not wise to rush into buying now. JPMorgan analysts warn that silver's current price is still too high and could fall further during times of stress. However, long-term fundamentals remain strong.

Experts advise that it's wise to stay away until the market stabilizes. If you do want to invest, invest in installments (like a SIP) rather than investing all at once. This method can significantly protect you from the risk of market fluctuations.

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