Why did silver prices plunge over 30% on Friday?

Silver prices experienced a historic plunge exceeding 30% on Friday due to a strengthening US dollar and investor reactions to a Federal Reserve appointment.

What signals are analysts watching for further silver price declines?

Analysts are observing trading momentum in silver, bonds, and ETFs, alongside potential inventory increases and a fall in open interest in silver futures contracts.

Will silver prices remain elevated through 2026?

Despite the recent plunge, concerns about inflation and US dollar strength may continue to support elevated silver prices through 2026, as investors seek safe-haven assets.

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Silver Plunges 30%: Is More Pain Ahead?

31 Jan

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Summary

Silver experienced a historic drop of over 30% on Friday.
Analysts are monitoring market signals for further potential declines.
Underlying inflation and dollar strength may keep silver elevated long-term.

Silver experienced a significant and historic plunge exceeding 30% on Friday, a sharp correction after a year of substantial gains. This dramatic sell-off occurred as the US dollar strengthened and investors reacted to a key Federal Reserve appointment. Analysts, including longtime commodities expert Jeffrey Christian of CPM Group, are now vigilant for specific market signals that could suggest the price drop is not over.

Christian indicated he is observing measures of trading momentum in silver, bonds, and related ETFs. He also noted that rising inventories could further dampen silver's momentum, pointing to a narrowing supply-demand imbalance and potential increases in silver mining output. High open interest in silver futures contracts, particularly for March 2026 COMEX contracts, has supported recent prices, but a fall in open interest could remove upward pressure.