'Can Be A Nightmare': Nithin Kamath On Silver Price Volatility After Historic Bull Run

Zerodha co-founder Nithin Kamath warned investors on Tuesday from making hasty moves with regards to silver's historic rally, stating that it can be a "nightmare" to manage positions in silver futures if not sized properly.

Kamath's statements came after MCX silver futures saw a volatile fluctuation by 10% in the day's trade as well as the metal's historic rally across 2025 so far, going up over 170%.

"This type of move is what every trader dreams of capturing, but it can also be a nightmare to manage without a good understanding of how to size your positions. Especially when something moves ~10% intraday," Kamath wrote in a post on social media platform X.

The silver futures, which are due to expire in March 2026, went down over 10% or Rs 21,000 per kg, plummeting from an all-time high peak of Rs 254,174 per kg to Rs 233,120 per kg earlier in Monday's session.

Silver retreated in international markets as well after similarly reaching a record high of $80 an ounce, with gold also falling from levels near historic high during Monday's session. Investors engaged in mass selloffs and a market outlook with regards to geopolitical risks impeded safe-haven buying.

Spot silver had previously shed 4.8% at $75.32 per ounce, moving downwards from an all-time high of $83.62 that it reached earlier in the session.

One of the main reasons why this fluctuation took place for spot silver on a global scale include US President Donald Trump's announcement of peace talks on Sunday, leading to a reduction in safe haven buying and leading to investors booking profits.

Other factors include the Chicago Mercantile Exchange's margin hike of March 2026 silver futures contract by $5,000, silver's rally fatigue, strengthening US dollar and yields as well as the supply not matching the metal's demand.