Gold and silver have entered a turbulent phase following a blistering rally, prompting questions about whether the market is experiencing a short-term correction or a longer-term shift. The extreme price swings have caught the attention of veteran investor Vijay Kedia, who believes the surge is being fuelled more by speculators than genuine long-term investors.
In a video circulating on X, Kedia addressed the current market turbulence. “These are not investors driving the market, but speculators,” he said, stressing that such rallies often end in sharp reversals.
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Drawing on past episodes, Kedia recalled the 1980 “Silver Thursday” crisis. The Hunt Brothers attempted to corner nearly a third of the global silver supply, sending prices from $1.50 per ounce to nearly $50. Regulatory intervention forced them to liquidate, crashing silver to $6 and sparking market turmoil. “Same thing happened in 2011 when silver exceeded $50 only to collapse to about $11 in the following years,” Kedia said.
He added, “In 2025, silver again crossed $50. Within eight months, speculators pushed it to about $125. Now prices are crashing again.”
Kedia also joked about traders' reactions during corrections: “First, they speculate. When prices crash, they say they have invested.”
Using a metaphor, he said, “Metal is meant to melt when there is too much heat,” describing the natural consequence of overheated markets.
Watch the video here:
Mr. Vijay Kedia's funny take on gold and silver mania ????????
— Chronicles (@YMehta_) February 4, 2026
Credit: A clip of @VijayKedia1 pic.twitter.com/bv2oLYbS0Q
Geopolitics And Fed Concerns Amplify Volatility
The rally in precious metals last month was influenced by speculative buying, rising geopolitical tensions and renewed concerns over the independence of the US Federal Reserve. But the momentum reversed sharply late last week. Silver posted its largest single-day decline on record, while gold fell at its fastest pace since 2013, wiping out substantial recent gains.
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Markets Stage Early Recovery
On Thursday, Feb. 5, gold and silver began to recover. Silver rose to Rs 2.71 lakh per kg, while gold inched up to Rs 1.53 lakh per 10 grams, according to India Bullions data. Spot gold climbed as much as 1.2% in early trade, regaining part of the losses suffered over the previous two sessions. Despite the correction, gold remains around 15% higher for the year, while silver has pushed above $90 per ounce, signalling tentative optimism among traders.
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