Archive · 31 Jan 2026
Commodity Markets Crash: Gold, Silver Plunge
On January 30, the commodity markets saw a big crash.
Silver prices dropped by 30%, and gold prices fell by 15%.
Nithin Kamath, the founder of Zerodha, shared an important lesson from this event.
He said that traders should only use money they can afford to lose because sometimes markets can move so quickly that usual safety measures don't work.
This means traders can lose a lot of money very fast.
Kamath gave examples from the past, like the 2008 financial crisis and the COVID-19 pandemic, to show that such extreme market movements can happen.
He emphasized that while risk management is important, it's not a guarantee against all losses.
Traders need to be aware of this reality to participate sustainably in financial markets.
Commodity markets experienced a significant crash on January 30, with silver prices dropping 30% and gold prices plunging 15%.
Nithin Kamath, founder and CEO of Zerodha, highlighted the importance of trading only with money one can afford to lose.
Kamath noted that extreme market volatility can render traditional risk management measures ineffective.
Historical examples, such as the 2008 financial crisis and the COVID-19 crude oil price crash, illustrate the potential for sudden, severe market collapses.
Risk management is crucial but not a guarantee against all losses, and traders must respect the reality of extreme market events.
- Who
- Nithin Kamath, Zerodha's founder and CEO
- What
- Commodity markets crash with gold and silver prices plunging
- When
- January 30
- Where
- Commodity markets
- Why
- To highlight the importance of risk management and trading with money one can afford to lose
- Date
- January 30
- Silver Crash
- 30%
- Gold Plunge
- 15%
- Key Lesson
- Trade only with money you can afford to lose
- Expert
- Nithin Kamath, Zerodha's founder and CEO
- Platform
- X (formerly Twitter)
- Historical Examples
- 2008 financial crisis, COVID-19 crude oil negative prices
