Silver Crashes 30% After Record Rally as Liquidity Wipeout Shakes Global Markets

Silver prices witnessed one of the most dramatic collapses in commodity market history, plunging up to 30% globally on Friday after a parabolic rally abruptly reversed. In India, MCX Silver March futures crashed 27%, or ₹1,07,968 per kg, to settle at ₹2,91,925 — the steepest single-day fall ever recorded. The sell-off came just a day after silver touched record highs, with analysts attributing the crash to a severe liquidity wipeout driven by extreme leverage, overbought technicals and a sudden macro shock.

International markets saw even sharper losses. Spot silver tumbled as much as 37%, marking its worst single-day decline on record, while COMEX futures slumped over 30%, falling from above $120 an ounce earlier in the week to nearly $80. Silver-linked ETFs amplified the pain, with leveraged funds posting historic one-day crashes as forced liquidation, margin calls and algorithmic selling accelerated the downturn once prices began slipping.

The trigger for the reversal was widely linked to a shift in US monetary expectations after President Donald Trump nominated Kevin Warsh, seen as an inflation hawk, as the next Federal Reserve Chair. The move sparked a sharp rebound in the US dollar and a rise in real yields, pressuring precious metals. While gold also corrected sharply, silver bore the brunt due to its speculative positioning. Despite the severity of the fall, analysts stressed the move represents a violent correction rather than a long-term trend reversal, citing strong industrial demand and persistent supply deficits supporting silver’s broader bullish outlook.

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