Gold, Silver Correct Sharply but Remain Above Historic Bear Market Lows: DSP Report

While the decline has been significant, it remains smaller than several historical corrections. The sharpest fall came after gold's January 1980 peak, when prices plunged 71 per cent. It took nearly 19 years and seven months for gold to establish a durable bottom, while regaining its previous record high required another 28 years.

Other major downturns were also steeper than the current cycle. Gold corrected 49 per cent after its December 1974 peak, reaching a durable bottom in around one year and eight months, while the correction following the September 2011 high reached 46 per cent. The March 2008 cycle saw prices decline 34 per cent.

The report noted that the current cycle crossed the 25 per cent drawdown threshold within two months of the January 2026 peak. However, as the correction is still unfolding, it is too early to determine when prices will establish a durable bottom or recover to fresh record highs.

Silver has witnessed a steeper correction than gold during the current cycle. After climbing to an all-time high of $121.6 per ounce in January 2026, the metal dropped to $55.6 per ounce, marking an overall decline of about 54 per cent.

Despite the sharp fall, DSP Netra said the correction remains less severe than some of silver's biggest historical bear markets. Following its January 1980 peak, silver crashed 93 per cent, taking more than 11 years to reach a durable bottom and over 31 years to recover its previous all-time high.

The report also highlighted that silver declined 77 per cent after the April 2011 peak, while the August 1975 cycle recorded a comparatively milder correction of 27 per cent.

Like gold, silver breached the 25 per cent drawdown mark within a month of its January 2026 peak. Since the ongoing correction has not yet run its course, the report said it remains too early to identify a durable bottom or estimate the time needed for prices to reclaim previous highs.

Looking at long-term trends, DSP Netra observed that precious metals have historically taken anywhere from a few months to several years to reach durable bottoms following major peaks. Recovering previous record highs has often taken much longer, in some cases stretching over decades.