• Silver prices stage a 9% intraday rebound to $77.71 per ounce, recovering from a sharp 40% drop from January's all-time high near $121.64.
  • The precious metal remains up 135-139% year-over-year despite recent turbulence, driven by inflation fears and safe-haven demand.
  • Market analysts warn of continued volatility as deleveraging pressures and speculative unwinds create unpredictable swings in the smaller, more volatile silver market.

Spot silver prices extended gains on Thursday, climbing 9% to $77.71 per ounce in a brief intraday rebound that offered temporary relief after a brutal sell-off. The move comes amid extreme volatility that has seen prices surge to unprecedented levels before plummeting dramatically, leaving traders and investors grappling with whipsaw conditions.

According to people familiar with market activity, the rebound reflects ongoing deleveraging and financial turbulence that has characterized silver trading throughout early 2026. Prices had peaked at approximately $121.64 in late January, driven by speculative fervor and inflation concerns, only to plunge over 40% from that high to around $64.10 on February 6. By February 5, spot prices ranged from $76.06 to $77.25, down 12-14% from the prior day's $90.54 but still up dramatically from the ~$32.30 level seen in February 2025.

"We're seeing classic volatility in a market that's reacting to both macroeconomic pressures and technical factors," said one metals trader who requested anonymity due to firm policy. "The 9% bounce is encouraging for bulls, but without sustained buying pressure, it could prove fleeting."

Efforts to stabilize the market have hit snags as silver's smaller size compared to gold amplifies price movements. While gold has surged to $4,858-$4,901, up sharply year-over-year, silver's moves have been more extreme, creating both opportunity and risk for market participants. Industrial demand from sectors like electronics and solar continues to provide long-term support, but short-term corrections have followed speculative unwinds that have rattled even seasoned traders.

Market sources indicate that physical demand remains robust despite the volatility. The U.S. Mint recently repriced silver products higher due to sustained physical demand following the January spike from $30.55 to over $93.84. This physical tightness has created a divergence between paper and physical markets, with some investors reportedly taking advantage of lower prices to accumulate physical holdings.

Attempts to reach major silver trading desks for comment were unsuccessful during market hours, but conversations with industry participants suggest a cautious optimism tempered by recognition of ongoing risks. "You have to be nimble in this environment," another market participant noted. "The fundamentals support higher prices over time, but right now we're dealing with technical factors and sentiment shifts that can change direction quickly."

Looking ahead, analysts expect continued volatility above the $70 level, with potential for further rebounds but also risks of additional deleveraging. Long-term forecasts remain bullish, with some projections suggesting averages could rise to $145-$157 by 2028-2029 if economic pressures persist. For now, market participants are watching for signs of stabilization while navigating one of the most turbulent periods in recent silver market history.

Correction: An earlier version of this article stated silver prices had dropped to $64.10 on February 5. The correct date is February 6.