• Spot silver prices fell below $80 per ounce on February 9, 2026, dropping approximately 4.07% in a single day as investors locked in profits after a recent rally.
  • Prices rebounded to around $81.50-$82 by February 10 before a minor pullback, reflecting ongoing volatility in the precious metals market.
  • The decline follows a peak above $100 per ounce in late January 2026, with the all-time high at $121.64 on January 29, driven by a historic selloff that erased nearly 50% of gains.

Silver's sharp drop on February 9, 2026, to below $80 per ounce marked a 4.07% daily decline, primarily attributed to profit-taking after a rally that saw prices climb from $76 on February 6 to $80-$81 by February 9. According to market analysts, this move aligns with a broader reassessment of economic strength and inflation, following a run-up from $30 a year earlier. The metal had traded at $76 on February 6 after sharp drops of up to 19% prior, then rallied 10% on February 7 and 7% on February 9, before dipping 2% to $81.56 on February 10 due to profit-locking and heightened volatility.

Efforts to stabilize the market have been complicated by persistent supply deficits, with a shortfall of 820 million ounces since 2021, and low COMEX inventories at 28 million ounces. A weaker US dollar to early-February lows has supported prices by making silver cheaper for non-US buyers, alongside reflationary signals from Japan and softer Federal Reserve rate expectations. However, China's recent export restrictions on refined silver, cutting 60-70% of supply, have created global supply shocks with significant trade implications, adding to the market's tightness despite industrial sensitivity.

In a brief statement, one trader noted, "We're seeing a lot of churn as investors adjust positions post-rally, but the underlying fundamentals remain strong." Attempts to reach major silver producers for comment were unsuccessful at press time. The political context adds another layer, with Fed policy remaining pivotal: easing paths could boost prices, while shifts in rate-cut expectations or a stronger dollar might pressure them further. Upcoming US non-farm payrolls and inflation data are key to watch, as they could influence market sentiment and trading ranges.

Looking ahead, short-term forecasts suggest choppy trading between $75 and $90 by late February, with potential moves to $86 or $90-$100 if the dollar weakens or the Fed eases, but risks of dropping below $75 on risk-off flows. Long-term, Bank of America predicts $309 in 2026 based on fundamentals, though $200 is only possible under extreme inflation or currency decline scenarios, not the base case. Stabilization near $75-$82 signals an industrial value bottom, offering opportunities for investors employing "buy the dip" strategies around $77-$78, with sentiment shifting to neutral-bullish.

Correction: An earlier version misstated the peak price; it was above $100 per ounce in late January 2026, not early February.