February 13, 2026
The silver market witnessed a dramatic “flash crash” today, with prices plunging 10% in a single session, dragging down Indian silver ETFs and heavyweight metal stocks like Hindustan Zinc and Hindalco. While the headline figure is startling, the crash is the result of a “perfect storm” of global macroeconomic shifts, ranging from a red-hot US labor market to a stunning geopolitical pivot from the Kremlin.
1. The 3 Catalysts: Why Did Silver Crash?
The sell-off was triggered by a convergence of three powerful factors that strengthened the US Dollar and crushed demand for non-yielding assets like silver:
- The US Jobs Shock: January non-farm payroll data came in at 130,000 jobs, nearly double the forecast of 70,000. This resilience in the US economy has effectively “killed” hopes for a Federal Reserve rate cut in March. High-for-longer interest rates make the dollar more attractive, putting immediate pressure on precious metals.
- The “Kremlin Memo” & Dollar Dominance: In a move that has shocked global markets, an internal Kremlin document reviewed by Bloomberg suggests Russia is considering a return to the US Dollar settlement system. Part of a potential economic pact with the Trump administration, this shift would undermine the “de-dollarization” trend, reinforcing the Greenback’s role as the undisputed global reserve currency and draining the “safe-haven” appeal of silver and gold.
- Technical Selling & Margin Calls: As silver breached the crucial psychological support of $80 per ounce (and ₹3,00,000 per kg in India), algorithmic selling took over. The 11% overnight drop in spot silver triggered margin calls, forcing further liquidation.
2. Domestic Impact: Silver ETFs and Metal Stocks crash
The carnage in the international spot market was immediately mirrored in the Indian markets:
| Asset | 24H Drop | Analysis | Tracking |
|---|---|---|---|
| Tata Silver ETF | -7.00% | Highest volatility today. | See Chart |
| ICICI Pru Silver ETF | -6.20% | Institutional exit volume noted. | See Chart |
| Hindalco Industries | -5.01% | Hit by US Novelis fire costs. | See Chart |
| Hindustan Zinc | -4.83% | Broke support at ₹597. | See Chart |
Company Highlight: Hindalco reported a 45% drop in Q3 profit, largely due to a ₹2,610 crore exceptional expense linked to fire incidents at its US subsidiary, Novelis. The combination of poor earnings and falling metal prices made it one of the top losers in the Nifty Metal index today.
3. The Silver Lining: A Bargain Hunter’s Opportunity?
Despite the 10% crash, the MCX March 2026 futures showed signs of life toward the afternoon session, rebounding nearly 3% (₹6,565) to trade around ₹2,43,000 per kg.
- Stabilization: Analysts suggest that while volatility will persist, the “worst of the selling” may be over as long as silver holds the $70/oz (International) and ₹2,40,000 (Domestic) support levels.
- The SIP Advantage: For retail investors, experts recommend the Systematic Investment Plan (SIP) route for Silver ETFs. Since silver is more volatile than gold, regular small investments help in Rupee Cost Averaging during such massive corrections.
Kaashika is a social media strategist and financial content creator at Lakshmishree. She specialises in simplifying complex IPO and stock market concepts into clear, easy-to-understand content. Having created over 500+ pieces of financial content across reels, blogs, website posts and digital creatives, Kaashika helps audiences connect with the world of finance in a more accessible and engaging way.
