Silver prices delivered one of their sharpest and most volatile moves in recent history on December 29, prompting Nithin Kamath, co-founder and chief executive officer of Zerodha, to caution that while such swings may appear ideal for traders, they can quickly turn into a nightmare.
Kamath’s remarks serve as a cautionary reminder for traders drawn to highly-volatile assets like silver. While rapid price moves can generate outsized gains, they also demand disciplined risk management.
Historically, silver has been a challenging asset for traders. It is known for sudden spikes, deep pullbacks, and volatile price action, often reacting sharply to global cues such as currency movements, interest rate expectations, and shifts in industrial demand. Unlike equities, where circuit limits and broader market participation can sometimes temper moves, commodity futures can amplify gains — and losses — through leverage.
Silver’s recent spike has coincided with a visible rise in commodity trading volumes in India, suggesting renewed participation from retail as well as active traders.
Silver’s surge
Silver has been among the standout performers across global commodities, surging sharply over the past year amid strong industrial demand, geopolitical uncertainty, and speculative interest. The recent rally pushed prices past key psychological levels, accompanied by intense volatility.
