Stock Market Crash: Gold and silver crash devastated the stock market, the biggest drop in 6 years, with crores of rupees lost in seconds.:On Monday, the stock market recorded its biggest decline since March 2020.

News Topical, Digital Desk : South Africa's stock market tumbled on Monday as global markets witnessed a massive sell-off in precious metals like gold and silver. This sudden shock, after a record-breaking rally, stunned investors. The country's main stock index fell several percent in a single day, and mining company shares fell sharply. The situation created a palpable sense of fear and uncertainty in the market.

The South African stock market recorded its biggest decline since March 2020 on Monday...but why did this happen? This weakness was directly linked to a sharp sell-off in precious metals. According to reports, the FTSE/JSE All Share Index fell by approximately 6.1% during the day's trading. Shares in the precious metals and mining sectors came under the most pressure.

Mining companies suffered the most in this decline. Shares of major companies like Sibanye Stillwater Ltd., Gold Fields Ltd., and AngloGold Ashanti Plc fell by at least 17% in a single day. It's worth noting that the South African stock market had previously seen a record 11 consecutive months of gains...

Lower Circuit Stock: Retail investors' favorite stocks are simply selling! -50% drop, lower circuit re-imposed today. This means that investor confidence remained strong, and the market had reached higher levels after a long rally.

But as a sharp sell-off in precious metals began globally, South African shares also began to slide.

Gold prices saw a sharp decline on Monday. Gold fell by nearly 10% and briefly traded around $4,400 per ounce.

This decline was particularly surprising because in January, gold had reached around $5,600 per ounce. This means that gold experienced significant fluctuations in a very short period of time.

Silver's condition was even worse than gold's. On Monday, silver prices fell by nearly 16%.

Prior to this, silver had seen a record-breaking 26% drop on Friday. This means that silver has dealt a significant blow to investors for two consecutive trading sessions.

This sharp decline in precious metals has directly impacted countries whose economies depend heavily on the mining and metals sectors.

South Africa is one of those countries where the production and export of gold and other metals is considered a vital part of the economy.

In such a situation, when gold and silver prices fall in the global market, it puts pressure on the earnings and future business prospects of mining companies.

The current market movement indicates that investors are now quite nervous about the sudden change in global sentiment.

When such a significant decline occurs after a long period of bullishness, profit-booking and risk-aversion typically intensify. This is why mining stocks saw the most selling.

Overall... South Africa's stock market currently appears to be closely linked to the weakness in precious metals. If gold and silver prices continue to remain under pressure, volatility may persist in mining stocks and the overall market in the coming days.