• Spot silver prices fell over 10% to $75.47 per ounce, continuing a volatile trend after a record 30-45% crash earlier in 2026.
  • The drop is driven by profit-taking, leveraged liquidations, and macroeconomic shifts including central bank tightening and US dollar strength.
  • Despite recent surges fueled by inflation fears and industrial demand, prices now hover near $80/oz, with experts divided on short-term recovery versus further declines.

Silver's dramatic descent to $75.47 per ounce marks another sharp downturn in a commodity that has been on a wild ride, with the latest plunge attributed to a combination of profit-taking and forced liquidations. This comes after prices surged nearly 250% over the past year from around $30/oz to over $100/oz by late January 2026, only to crash 30% on January 30—the worst drop since the 1980 Hunt Brothers debacle—and now slip further amid ongoing volatility.

According to people familiar with the matter, the selloff intensified as leveraged positions unwound and margin calls triggered stop-loss orders, exacerbating the downward pressure. One trader, who requested anonymity due to the sensitivity of market movements, described it as "a classic liquidation cascade" that has left many retail investors reeling after social media-fueled hype during the rally. Efforts to stabilize prices have hit a snag, with ETF outflows signaling a shift in sentiment from greed to fear.

Macroeconomic factors are playing a key role. The Federal Reserve's liquidity tightening and higher interest rates have strengthened the US dollar, pressuring dollar-denominated silver, while a global manufacturing slowdown has dampened industrial demand from sectors like electric vehicles, solar, and electronics. Kevin Warsh's nomination as Fed chair in late January boosted confidence in the dollar, reducing safe-haven demand and contributing to an earlier 27% crash in silver alongside gold's 10% drop. Without a sustained reversal in these trends, the metal could face further declines.

In the political arena, uncertainty around tariffs under the US Commerce Department's Section 232 review was resolved mid-January when President Trump opted for bilateral supply deals instead of new tariffs on critical minerals like silver, but this has done little to calm the markets in the short term. J.P. Morgan analysts note that structural supply constraints persist despite the tariff resolution, highlighting the disconnect between paper and physical markets that fuels volatility.

Looking ahead, the outlook is mixed. Some experts, like those at major investment banks, have flipped bullish, expecting a bounce from oversold levels as silver remains in its sixth year of supply deficits. They point to long-term drivers such as rising demand from renewables and potential Fed easing. However, bearish risks loom, including the possibility of a recession or prolonged high rates, which could push prices below $82 if equities continue to rally. As of now, attempts to reach out for comment from industry groups were unsuccessful, but market watchers emphasize that silver's dual nature as both a safe-haven and industrial asset amplifies its sensitivity to economic shifts.

This article was updated to clarify that the price drop occurred amid ongoing volatility following earlier crashes, not as an isolated event.