Silver Price Crash: These are the 4 reasons why silver fell by Rs 12,000 in a few minutes, what is going to happen next?

News Topical, Digital Desk : On January 22, 2026, silver prices suddenly plummeted by 4%. Prices on the MCX fell to nearly ₹12,000 per kilogram, and in the global market, silver also fell 3.6% to $91.17/oz. The question on many people's minds is: why did silver fall so rapidly? The answer is simple: the Trump administration's softening tariff policy, profit-booking after record highs, a sharp stock market rally, and increased global risk appetite. But will the decline stop here? That's the key question. If you invest in silver or buy jewelry, January 22nd was a shocking day for you. Silver, which had been hovering near record highs for the past few days, suddenly plummeted. Prices fell by nearly 4%, and rates on the MCX crashed. However, there were four major reasons behind this rapid decline—all four of which directly impact ordinary investors. 

1. Trump's softening policy—reduced the need for safe havens. Until a few weeks ago, there were fears that the US would impose heavy tariffs on Europe and Greenland. This threatened to escalate tensions in the world, and in such a situation, people buy gold and silver. But suddenly, news came that the Trump administration was cooling off the tariff issue and an agreement with NATO was almost finalized. This meant less fear and more trust in the world. And when fear subsides, people invest less in safe havens like silver. This led to a decline in prices. 

2. Profit-booking after record highs – People decided to sell. Silver had reached a record high of $95.87/oz a few days ago. When prices reach such high levels, there comes a time when large investors start taking profits. That is, they sell instead of buy. This heavy selling put further pressure on prices. 

3. Sharp rally in the stock market – Money moved from gold and silver to stocks. The US stock market saw a strong rise. People felt that the stock market offered greater earnings than silver. Therefore, funds withdrew money from silver and invested it in stocks. Less money and more selling in the commodity market led to a fall in prices. 

4. Global risk-taking environment – ​​Fed signals and low volatility. The World Volatility Index fell, meaning the market was calm. The Fed also indicated that interest rates would not be too aggressive in the future. This made investors believe that it was the right time to take risks. When people take risks, safe assets like silver and gold are left behind. The impact was clearly visible on MCX—Silver fell to ₹3,22,812 (-1.16%), reaching a low of ₹3,18,241. 

What's next? What's the real deal for the common man? Short-Term (over the next few days and weeks): A slight decline is possible. ₹3 lakh/kg is a strong support. Prices will fluctuate based on policy and global news. Medium/Long-Term (6 months–1 year): There's plenty of room for a rally because: ₹3 lakh/kg is in short supply worldwide. ₹3 lakh/kg is driving demand for silver in EV, solar, and AI technologies. ₹100,000/oz is a growing demand . ₹100,000/oz is a potential export restriction. Larger houses are quoting prices above $100/oz. ₹3 lakh/kg could return to MCX—and even go higher. This decline is currently a short-term phenomenon. In the long term, silver may see another rally.
 

Read More: The fall in the stock market is an opportunity, there will be a boom before the budget, understand from the experts which shares and funds to invest in?