Silver Price Meltdown: Historic Crash on Budget Day! Prices Tank ₹1.5 Lakh from Peak, Hits 9% Lower Circuit
New Delhi | Sunday, February 1, 2026
The bullion market witnessed an unprecedented "Black Sunday" as silver prices plummeted in a historic sell-off during the Union Budget 2026 special trading session. In a shocking turn of events, silver has crashed by nearly 37% (approx. ₹1,55,000 per kg) from its record high in just the last 48 hours.
Chaos on MCX: 9% Lower Circuit Triggered
As the special trading session commenced alongside Finance Minister Nirmala Sitharaman’s Budget speech, the Multi Commodity Exchange (MCX) saw silver futures go into a freefall. The metal crashed by ₹26,273, hitting a 9% lower circuit at ₹2,65,652 per kg. This is a massive reversal from the all-time high of ₹4.20 lakh reached just this past Thursday.
Why is Silver Dumping? (The Core Reasons)
Market analysts point to a "perfect storm" of factors causing this historic dump:
- Massive Profit Booking: After a parabolic 60% rally in January, institutional investors moved to book profits on Budget day to move capital into equities.
- The "Trump-Fed" Factor: Reports of Donald Trump nominating Kevin Warsh (known for a hawkish stance) as the next Fed Chair sent the US Dollar Index soaring, making precious metals more expensive globally.
- Budget Volatility: High speculative positions were liquidated as the Budget did not offer the expected duty cuts that bulls were betting on.
Retail Rates Today
While futures hit a circuit, physical retail rates have adjusted to the volatility. In major metros like Mumbai and Delhi, silver is currently retailing around ₹3,50,000 per kg, providing significant relief to retail buyers compared to last week’s sky-high prices.
Expert View: Is it a "Buy the Dip" Opportunity?
Commodity experts suggest that while the "bubble" has burst, the current correction might be an entry point for long-term investors. However, with the market locked in a lower circuit, analysts advise waiting for the price to stabilize over the next 48 hours before making bulk purchases.