Silvercorp Metals Down Over 12%, on Pace for Largest Percent Decrease Since February 2021 — Data Talk

By Adriano Marchese

Canadian miners were among the top decliners in Canada on Friday, in step with a retreat of gold and silver prices, after President Trump selected former Fed governor Kevin Warsh--who has a track record of supporting tighter monetary policy--to replace Jerome Powell as Federal Reserve chair.

The price of gold recently traded 5.7% lower at $5,048 an ounce while silver is down 15% to $96.80 an ounce.

Canada's large miners, Barrick Mining and Kinross Gold were down sharply, their shares falling 7.7% and 8.1%, respectively. Smaller miners were also dragged, with Aya Gold & Silver down 11.1%, Silvercorp Metal lower by 9.9% and Discovery Silver off 9.9%.

The day's decline is only a small dent for these companies, which have seen their stocks more than double or triple over the past months in lockstep with the meteoric rise in gold and silver prices.

Gold and silver, often considered safe havens, have been climbing in recent months as investors seek a flight to safety against persistent geopolitical instability, sticky inflation and heightened global trade tensions.

Canadian miners have largely been beneficiaries of the rise in commodity prices as producers of the precious metals.

Write to Adriano Marchese at adriano.marchese@wsj.com

Spot silver prices plummeted nearly 18% on Friday, dragged by heavy selling pressure that swept through the precious metals market.

The XAG/USD pair was down 14.6% to $98 an ounce at the time of writing, falling below the $100 mark for the first time since January 23. Silver futures for March 2026 deliveries fell 14.3% to $97.96 an ounce.

Meanwhile, gold’s rally was also cut short as the bullion fell below $5,000 per ounce earlier in the session. Spot gold (XAU/USD) was down nearly 7% at the time of writing, while futures for February 2026 deliveries sank 5.5% to $5,030.6 an ounce.

The U.S. dollar strengthened after reports that the Trump administration is preparing to nominate Kevin Warsh as the next Federal Reserve chair. The U.S. Dollar index (DXY), which measures the greenback against six major currencies, rose 0.5% to 96.6.

Warsh, a former Fed governor known for his hawkish stance on inflation, has recently argued for lower interest rates. Trump is expected to formally announce his choice soon, with Warsh seen as a leading contender to succeed Jerome Powell, whose tenure as the chairman ends in May.

ETFs Crash

The iShares Silver Trust (SLV) declined to about $91, erasing much of its year-to-date rally. As of Thursday’s close, SLV was still up roughly 56% for the year, but if premarket losses persist, those gains could shrink to nearly 35%. The abrdn Physical Silver Shares ETF (SIVR) slumped to $95.

Meanwhile, shares of silver miners First Majestic (AG), Hecla Mining (HL), and Pan American Silver Corp. (PAAS) declined around 11% in pre-market trading.

Silver prices on the Multi Commodity Exchange of India (MCX) fell sharply on Friday (January 30), hitting the 15% lower circuit amid a global sell-off in commodities. The white metal, which had surged nearly 9% to an all-time high of ₹4.20 lakh per kg on Thursday (January 29), settled at ₹3.99 lakh per kg.

Analysts attributed the decline to profit-booking following recent all-time highs and a rebound in the US dollar.

"After hitting record highs, gold and silver prices dropped as a rebound in the US dollar triggered aggressive profit-taking," said Manav Modi, Commodities Analyst at Motilal Oswal Financial Services.

He added that domestic prices fell more sharply than international benchmarks in the previous session, raising concerns over price parity.

Globally, Comex silver futures for April delivery dropped nearly 4% to $110.26 per ounce after touching a record $121.78 per ounce in the previous session.

According to Jigar Trivedi, Senior Research Analyst at IndusInd Securities, "Silver retreated from its all-time high as investors locked in profits, while the rebound in the dollar added pressure on the metal." He noted that despite the pullback, silver remains on track for a monthly gain of over 50%, marking its strongest January performance on record.

Rajkumar Subramanian, Head – Product & Family Office at PL Wealth, highlighted the longer-term context, noting that silver prices in India have risen from ₹1.5–1.6 lakh per kg in early 2025 to above ₹4 lakh per kg in January 2026, representing a roughly 165–170% gain over 12 months.

Subramanian added that the rally reflects a mix of safe-haven demand, tight supply, and rising industrial consumption in sectors such as solar, electronics, and manufacturing. He cautioned, however, that silver remains volatile, recommending calibrated, staggered investments to manage near-term price risks.

Despite the sharp correction, analysts said gold and silver continue to benefit from underlying economic and geopolitical uncertainties, supporting strong longer-term investor interest.

Gold prices held near all-time high levels on Friday (January 30) as investors continued to seek safety amid heightened geopolitical tensions and uncertainty around global economic and monetary policy developments.

In international markets, spot gold rebounded after a brief pullback, remaining close to recent all-time highs. The precious metal had eased to $5,333 an ounce, its first decline in nearly two weeks, but overall sentiment stayed supportive as investors reduced exposure to equities and sovereign assets.

Risk appetite weakened after US stock futures slipped, with S&P 500 and Nasdaq 100 futures down about 0.3 per cent. Market caution followed warnings from Apple Inc. on rising costs and margin pressures, alongside uncertainty ahead of an expected announcement by US President Donald Trump on his nominee for the next Federal Reserve chair.

US Treasury prices firmed and the dollar edged higher.

Despite the firmer dollar, gold remained resilient, reflecting persistent demand for safe-haven assets amid geopolitical risks and concerns over policy direction. Earlier this week, gold surged to a fresh peak of ₹5,595.02 per ounce, marking its largest intraday gain on record.

Silver also stayed strong in overseas trade, touching a lifetime high of $120.45 per ounce, supported by sustained investor interest in precious metals.

In India, bullion prices tracked the global rally. Gold prices in the national capital rose to a new record of ₹1.83 lakh per 10 grams (inclusive of all taxes) on Thursday (January 29), according to the All India Sarafa Association. Silver prices crossed the ₹4 lakh per kilogram mark for the first time, climbing to an all-time high of ₹4.04 lakh per kg.

Silver has gained more than 69% so far this year, significantly outperforming gold, supported by a combination of investor demand and its industrial use.

Demand moderates as prices surge

While prices remain elevated, physical demand has softened. The World Gold Council said India’s gold demand fell 11% in 2025 to 710.9 tonnes, weighed down by record-high prices and evolving consumer preferences. Demand is expected to remain lower in 2026.

However, higher prices sharply increased the value of demand. In rupee terms, India’s gold demand rose 30% year-on-year in 2025, reflecting the impact of soaring prices despite lower volumes.

Globally, total gold demand crossed 5,000 tonnes in 2025, driven primarily by investment demand as investors sought protection against economic uncertainty and geopolitical risks.

-With agencies inputs

Gold remains a steady indicator of global economic and geopolitical trends, but silver’s sharp surge is drawing attention, according to a new report from WhiteOak Capital Mutual Fund titled “Gold is Talking, Silver is Screaming: A Case for Prudent Repositioning.”

The report explains that gold traditionally reflects macroeconomic health, currency trends, and systemic risks. Silver, however, has recently outperformed gold at a rapid pace—a pattern the report describes as entering a highly speculative phase. Historically, such surges have often been followed by corrections.

WhiteOak notes that the relative movement suggests investors may benefit from reviewing their allocations rather than chasing short-term gains.

Silver’s outperformance in focus

A key measure highlighted is the Gold-to-Silver Ratio (GSR), which compares the relative price of the two metals. Currently, the ratio is around 46:1, well below its 10-year average of approximately 80:1.

The report points out that historically, such a low ratio has coincided with periods where silver corrected faster than gold.

While a weakening rupee can make metals more attractive, the report emphasizes that currency trends alone do not prevent sharp declines during speculative spikes.

Comparing metals and equities

WhiteOak also examines the opportunity cost of holding metals at elevated levels. Unlike equities, gold and silver do not generate cash flows. In contrast, companies in the Nifty 50 reinvest profits, distribute dividends, and offer potential for capital appreciation.

The fund house highlights that since inception, the Nifty 50 Total Returns Index has matched or exceeded gold’s compound annual growth rate of roughly 13.2%, while providing higher liquidity. Tax incentives—such as the ₹1.25 lakh annual exemption on long-term capital gains from equities—also differentiate equities from physical metals.

Suggested portfolio considerations

The report outlines a measured approach:

• Silver valuations appear stretched, while gold is relatively stable.
• Historically, late-stage silver rallies have often preceded corrections.
• A balanced allocation between metals and other assets, including equities, could reduce exposure to sudden swings.

WhiteOak’s report frames the current market as a period for assessment and strategic repositioning rather than chasing momentum, noting that gold and silver movements are divergent.

Silver prices in India surged to an all-time high on Thursday (January 29), crossing ₹4 lakh per kilogram in futures trade, as a sharp rally in global bullion markets and strong investor demand lifted precious metals across the board.

On the Multi Commodity Exchange (MCX), silver futures for March delivery jumped 5.73% to an all-time high of ₹4.07 lakh per kg. The white metal has outperformed gold in recent sessions, supported by firm industrial demand and tight global supply conditions.

Gold prices also scaled fresh peaks domestically. Gold futures for February delivery rose 8.8% to a lifetime high of ₹1.80 lakh per 10 grams on the MCX, tracking strong gains in overseas markets.

The rally mirrored sharp moves internationally. On Comex, gold futures crossed the $5,600-per-ounce mark for the first time, with April contracts settling near $5,626.8 an ounce. Comex silver futures also hit a fresh record, climbing close to $120 an ounce.

Analysts said silver benefited from a combination of industrial demand and a weaker US dollar, while gold continued to draw safe-haven flows amid heightened geopolitical and economic uncertainty.

Manav Modi, commodities analyst at Motilal Oswal Financial Services, said precious metals gained as investors sought safety following persistent inflation concerns, heavy central-bank buying and expectations that US monetary policy may remain accommodative for longer.

Market participants also reacted to signals from the US Federal Reserve, which left interest rates unchanged at its latest meeting. Fed Chair Jerome Powell flagged ongoing inflation pressures and concerns around the US fiscal position, reinforcing the appeal of bullion as a hedge, analysts said.

Geopolitical tensions further supported prices after fresh strains emerged around Iran’s nuclear programme, keeping risk sentiment fragile and boosting demand for safe-haven assets.

Offering a longer-term view on gold, Sandip Raichura, CEO of Retail Broking and Distribution at PL Capital, said the metal appears to be in a structural bull phase, driven by a fractured global order and rising demand for gold as a strategic reserve asset. He cautioned, however, that prices could remain volatile in the near term due to event-driven risks.

-With agencies inputs