New Delhi– Gold and silver have fallen sharply from their recent record highs, but the current correction remains less severe than several historical bear markets in precious metals, according to the July 2026 edition of DSP Netra.
The report analyzed major drawdowns in gold and silver prices since the 1970s, comparing the size of each decline, the time taken to reach a durable bottom and the period needed to reclaim previous record highs.
Gold reached an all-time high of $5,602 per ounce in January 2026 before falling to $3,942 per ounce, a decline of nearly 30 percent, according to the report.
While the drop has been significant, it is smaller than several past corrections. Gold’s steepest decline came after its January 1980 peak, when prices plunged 71 percent. The metal took nearly 19 years and seven months to reach a durable bottom and 28 years to reclaim its previous record high.
Other historical downturns were also deeper than the current cycle. Gold fell 49 percent after its December 1974 peak, reaching a durable bottom in about one year and eight months. The correction after the September 2011 high reached 46 percent, while the March 2008 cycle saw prices decline 34 percent.
The report said the current cycle crossed the 25 percent drawdown threshold within two months of the January 2026 peak. However, because the correction is still unfolding, it is too early to determine when gold will reach a durable bottom or return to record highs.
Silver has seen a steeper decline than gold in the current cycle. After hitting an all-time high of $121.6 per ounce in January 2026, silver fell to $55.6 per ounce, a drop of about 54 percent.
Despite the sharp pullback, DSP Netra said silver’s current correction is still less severe than some of its largest historical bear markets. After its January 1980 peak, silver crashed 93 percent, taking more than 11 years to reach a durable bottom and more than 31 years to recover its previous all-time high.
The report also noted that silver fell 77 percent after its April 2011 peak, while the August 1975 cycle saw a milder correction of 27 percent.
Like gold, silver breached the 25 percent drawdown mark within a month of its January 2026 peak. Because the current correction has not yet ended, the report said it remains too early to identify a durable bottom or estimate how long it may take for silver to reclaim its previous high.
DSP Netra said long-term trends show precious metals have historically taken anywhere from a few months to several years to reach durable bottoms after major peaks. Recovering previous record highs has often taken much longer, in some cases stretching across decades. (source: IANS)
