The comment followed a dramatic session on the Multi Commodity Exchange (MCX), where silver March futures plunged by about Rs 21,000 per kg to an intraday low of Rs 2,33,120, wiping out gains within an hour of afternoon trade. The fall came after prices had surged to a record Rs 2,54,174 earlier in the day, triggering aggressive profit booking.
Analysts attributed the sudden reversal to easing geopolitical tensions, which cooled safe-haven demand across the bullion complex. Silver, which has gained about 181% year-to-date, has been one of the strongest-performing commodities globally, outpacing gold on the back of tight supply, low inventories and rising industrial demand. Its recent designation as a critical mineral in the US has further added to speculative interest.
Adding to the pressure was a margin hike by the Chicago Mercantile Exchange, effective from today, which raised the cost of holding leveraged positions across major derivatives platforms, including CME, COMEX, CBOT and NYMEX. Such margin increases often force traders to cut exposure quickly, amplifying intraday volatility.
Kamath’s warning about position sizing is consistent with his earlier remarks on risk discipline. He has repeatedly cautioned that poor position sizing is among the most overlooked causes of heavy trading losses, arguing that even traders who get market direction right a majority of the time can be wiped out by a single oversized bet.
“You can be right on direction 60% of the time and still lose everything if you size your positions poorly,” he has said previously.
Kamath has also referenced lessons from veteran traders such as Tom Basso, underscoring that risk management is not a secondary concern but a core pillar of trading success. According to Kamath, sharp commodity moves — like silver’s latest whipsaw — are precisely the environments where sizing mistakes become fatal.Also read: 2026 may deliver double-digit equity returns: Sunil Subramaniam
For now, the episode underscores a broader shift underway in Indian commodity markets. Rising participation and leverage are pushing volumes higher, but they are also making price action more unforgiving. As silver’s record rally meets sudden air pockets, Kamath’s message is clear: volatility creates opportunity only for those who survive it.
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