Market experts said a large number of investors entered gold and silver trades over the past two months, drawn by sharp and steady price gains, many of which were fuelled by leveraged positions.
However, the recent sell-off wiped out nearly two months of gains in just two days, an outcome few had anticipated.
Ajay Bagga, banking and market expert, was quoted by news agency ANI as saying that the January 29–30 market meltdown hurt leveraged positions, while long-term investors, particularly Indian households, are likely to continue holding. He urged caution against leverage and warned against dismissive reactions towards investors facing losses.
Bagga added that while short-term price movements are unpredictable, long-term drivers such as central bank buying, currency debasement, fiscal deficits and rising silver demand from EVs, AI and renewable energy sectors remain intact.