Silver Investment Plan: From Rs 4.2 lakh peak to 40% crash— Is this a buying opportunity?

Silver has been extremely volatile over the past five trading sessions. After touching a high of Rs 4,20,000 per kg, the precious metal crashed to Rs 2,25,000 per kg by February 2, 2026. However, it recovered somewhat on February 3, reaching Rs 2,53,000.Even as silver remains down about 40 per cent from its peak, investors in the precious metal are wondering whether this sharp decline now signals a buying opportunity.Is another strong rally in silver on the horizon? What should be the strategy for booking a profit from silver now?665% surge is seen in the current cycleAjay Kedia, Director of Kedia Advisory, said the silver rally began in October 2022, when its price was Rs 54,900 per kg. From October 2022 to January 2026, the rate increased by 665 per cent, crossing Rs 4,20,000.The surge in 2025 alone was 165 per cent. A historical rally was witnessed in silver in January 2026. Although it is currently down 40 per cent from its peak at Rs 2,53,000, it is still 350 per cent stronger in the current cycle.Silver price: What is the current situation in silver?Trade tensions between India and the US have eased following the announcement of a trade deal on Monday. India and the US have agreed to a trade deal under which Washington will bring down the reciprocal tariff on Indian goods to 18 per cent from the current 25 per cent, US President Donald Trump said on Monday after a phone conversation with Prime Minister Narendra Modi.In addition to this, the US and Iran may also sit down for talks. There are also expectations of easing tensions between Russia and Ukraine. All these factors are creating a positive sentiment once again.Related News | India-US trade deal impact on Gold, Silver price today, Feb 3: Silver zooms Rs 19000, Gold up 4%; time to buy?Silver price: What will happen next in silver?Ajay Kedia said that the surge in silver today may continue further. From here, silver could strengthen to Rs 2,90,000. However, a very strong rally is not expected in silver right now. While silver may currently offer returns that beat inflation, investors should target a 2 to 3-year timeframe for high double-digit returns.Silver rate: At what level should one buy silver?Ajay Kedia said that silver is still more than 350 per cent stronger than its October 2022 levels. Therefore, investors should wait for now. Buying should be considered when silver falls to the level of Rs 1,80,000 to Rs 2,00,000 per kg. However, if you want to invest in silver, do so through a Silver ETF, preferably via an SIP (Systematic Investment Plan).Silver, Gold rates on TuesdaySilver and gold prices ended a three-day steep fall and rebounded sharply in the national capital on Tuesday, with the white metal surging Rs 24,000 to Rs 2.84 lakh per kg, while gold climbed to Rs 1.57 lakh per 10 grams amid firm global cues and a weak US dollar.According to the All India Sarafa Association, silver prices soared Rs 24,000, or 9.23 per cent, to Rs 2,84,000 per kilogram (inclusive of all taxes). The metal had closed at Rs 2,60,000 per kg on Monday after slumping by Rs 52,000.The rebound followed a steep three-day fall in which silver prices plummeted Rs 1,44,500, or nearly 36 per cent from Rs 4,04,500 per kg -- its all-time high -- recorded on January 29.In the international markets, both precious metals mirrored the domestic rebound, with spot silver prices gaining USD 9.55, or 12.07 per cent, to USD 88.77 per ounce, while gold climbed to USD 275.39, or 5.91 per cent, to USD 4,935.49 per ounce.