Gold-Silver Price Crash Alert: Expert Warns of Up to 50% Drop, Investors Advised to Stay Cautious
Gold-Silver Price: Expert Predicts Massive Correction in Precious Metals, Warns of 35–50% Fall Soon
Gold and silver prices have been touching record highs for several months, giving investors a sense of optimism about continued gains. However, a leading market strategist has issued a stark warning—suggesting that this rally may soon collapse. According to Amit Goyal, Co-founder and Chief Global Strategist of PACE 360, both gold and silver are trading far above their intrinsic values and could face a sharp correction in the coming months.
Record Highs May Signal the End of the Rally
In the international market, gold prices have surged close to $4,000 per ounce, while silver has hovered around $50 per ounce. In India, as of October 6, 2025, 24-carat gold in Delhi was priced at approximately ₹1,19,540 per 10 grams, and silver stood at ₹1,54,900 per kilogram.
Despite this historic rise, Goyal believes the market is in the final phase of an overheated rally. “This is one of the most extreme bull runs in gold and silver history,” he said. “Only twice in the past 40 years have we seen similar conditions—each followed by a steep correction.”
Potential Crash: 35% Fall in Gold, 50% in Silver
Goyal forecasts a 30–35% drop in gold prices and a possible 50% collapse in silver once the correction begins. Drawing comparisons with past market cycles in 2007–08 and 2011, he noted that precious metals tend to crash heavily after strong rallies.
If his projections hold true, gold could fall to around ₹77,700 per 10 grams, while silver might plummet to ₹77,450 per kilogram. “Silver is showing the highest level of speculative frenzy,” Goyal added. “Once the momentum breaks, the downside could be severe.”
The Underlying Factors Behind the Warning
The expert attributes this anticipated correction to a combination of overvaluation, a strong U.S. dollar, and an upcoming global economic slowdown. He predicts a deep recession led by the United States within the next two to three years, which could reduce industrial demand for silver—especially in sectors like photovoltaics, semiconductors, and electric vehicles.
Goyal cautioned that while short-term rallies may continue, the broader trend indicates that the market is due for a “regime change”—a significant shift in price patterns. “Prices might rise a little more, but the long-term sustainability of this uptrend is doubtful,” he emphasized.
When Will Gold Become Attractive Again?
According to Goyal, the ideal re-entry point for investors could emerge once gold corrects to around $2,600–$2,700 per ounce. “At those levels, gold will again become one of the best global investment opportunities,” he said. However, he remains cautious about silver, predicting weaker long-term prospects due to declining industrial demand amid the expected recession.
Short-Term Outlook: Temporary Strength, Long-Term Risk
Despite his bearish forecast, Goyal believes that gold and silver could still see short bursts of price strength before the correction begins. “We may witness minor rallies, but they’re not likely to last,” he explained. “Investors should prepare for volatility and avoid overexposure at current levels.”
What Should Investors Do Now?
Financial advisors suggest maintaining a balanced portfolio, reducing exposure to speculative metals, and waiting for more stable prices. Those planning to invest in precious metals should do so gradually through systematic approaches rather than lump-sum purchases.
Experts also recommend keeping an eye on global inflation trends, central bank policies, and currency movements—all of which can significantly influence gold and silver prices.
Disclaimer:
The insights and predictions mentioned here reflect the personal opinions of the expert cited and do not represent investment advice from this publication. Precious metal prices are subject to market risks. Investors should always consult certified financial advisors before making any investment decisions.
