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| Silver price |
Sharp Decline Reflects Speculative Pressures in Silver Market
Silver price volatility intensified on Thursday, pushing the metal to a one-month low. Spot silver dropped over 15% to $75 per ounce by midday New York trading. The selloff erased all gains from the past two sessions. Meanwhile, the rout began in Asia and extended to the U.S., echoing last week’s historic crash. Investors are increasingly concerned that speculative flows are distorting price discovery.
China-Led Speculation Drives Extreme Fluctuations
The surge in silver demand over the past year exceeded 130%, fueled by industrial consumption and investor interest in safe-haven assets. However, parabolic buying in China has amplified volatility. As a result, prices fell sharply after the metal’s all-time high of $121.64 per ounce last month. Analysts warn that the silver market remains highly flow-driven, with CTA and speculative positions dominating price action over physical fundamentals.
Volatility Likely to Persist in the Short Term
Due to its smaller market size, silver has historically exhibited higher volatility than gold. Experts predict that extreme price swings will continue, with upside dependent on renewed inflows and downside moderated by structural tightness. Bloomberg strategists note key support around $71–$70 per ounce, suggesting heightened risk aversion across global markets if prices return to the $60s. Consequently, silver price volatility is expected to remain a central concern for traders and industrial buyers.
ScrapInsight Commentary
The silver market’s sharp corrections highlight the risks of speculative-driven pricing, especially in China. While industrial demand remains solid, ongoing volatility may suppress near-term investment. Policymakers and traders should monitor inflows and macro linkages to gauge price stability.
