Gold-Silver ETFs Crash 20%: Investors Face Major Blow, What's Next?

• Gold and Silver ETFs experienced a sharp decline of up to 20% on Monday, February 2, due to falling precious metal prices.
• Silver Futures plunged by 6% on MCX, with March expiry Silver Futures falling to 2,49,713 rupees per kilogram, 41% below its record high.
• Gold Futures also saw significant drops, with April expiry Gold Futures down 3% to 1,43,335 rupees per 10 grams, a 26% fall from its all-time high.
• The crash is attributed to profit booking, a stronger dollar, fears of stricter US monetary policy under potential new Fed Chair Kevin Warsh, and increased margin requirements by CME Group.
• Experts suggest the long-term outlook for precious metals remains strong, advising investors to rebalance portfolios and consider gold over silver for better risk-reward.

Why It Matters: Gold and Silver ETFs crashed up to 20% due to multiple factors, prompting investors to re-evaluate their holdings.