• Silver prices tumble 7% to $48.79 per ounce, extending the sharp reversal from record highs
  • The sell-off coincides with improving risk sentiment as U.S.-China trade tensions ease
  • Despite the correction, silver remains up approximately 78% year-to-date amid ongoing market volatility

Spot silver prices extended their dramatic slide Thursday, falling another 7% to trade at $48.79 per ounce as of midday trading. The decline marks a stark reversal from earlier in the week when the metal hit a record high of $54.47, catching many market participants off guard with the speed and severity of the pullback.

Traders and analysts pointed to several factors driving the sell-off, with profit-taking after the historic rally emerging as the primary catalyst. "We're seeing a classic case of speculative unwinding," said one metals trader at a major investment bank who requested anonymity because they weren't authorized to speak publicly. "The velocity of the move higher was unsustainable, and now we're seeing the other side of that trade."

The timing of the decline coincides with constructive developments in U.S.-China trade discussions, which have improved overall market sentiment and drawn capital away from safe-haven assets. High-level talks between Washington and Beijing have reduced immediate fears of escalating trade conflict, according to people familiar with the matter.

Despite the sharp correction, silver remains one of the standout performers of 2025, still up approximately 78% year-to-date. The metal's remarkable rally earlier this year was fueled by strong investment inflows, central bank buying, and safe-haven demand amid global uncertainties.

Market structure also played a role in the recent volatility. The London silver squeeze that had pressured prices higher has temporarily eased as U.S. and Chinese supplies entered the market, exposing deeper structural imbalances in the physical silver market.

Looking ahead, traders are closely watching the Federal Reserve's upcoming policy decision on October 29, where the central bank is expected to cut interest rates by 25 basis points. While lower rates typically support precious metals, the immediate market reaction has been dominated by position adjustments and profit-taking.

Attempts to reach several major silver ETF managers for comment were unsuccessful Thursday afternoon as markets remained volatile. One portfolio manager at a commodity-focused fund, speaking on condition of anonymity, noted that "the fundamental case for silver remains intact, but we needed this correction to shake out the weak hands."

Correction: An earlier version of this article misstated the year-to-date percentage gain for silver. The metal is up approximately 78% year-to-date, not 63%.