Silver markets experienced extreme turbulence over the weekend. After a single-day crash of over 35% that dragged prices from around $120 to below $75, triggering panic selling, the white metal has staged a powerful recovery. Spot silver now trades at $91.68 per ounce, up more than 7% on the day, reclaiming the psychologically important $90 level.
Crash triggers: dollar strength, institutional unwinding, policy noise
The dramatic sell-off was fueled by a combination of factors: a stronger US dollar pressuring precious metals; uncertainty over the next Federal Reserve chairperson altering monetary policy expectations; and large-scale position liquidations by major institutions that amplified cascading selling pressure.
Rebound drivers: structural deficit and dip buying
The swift rebound is underpinned by three key elements. First, global silver supply has fallen short of demand for consecutive years, with a deficit of thousands of tonnes in 2025 and expectations of a widening gap in 2026. Industrial demand—especially from solar photovoltaics, electric vehicles, electronics, and AI applications—provides solid fundamental support. Second, bargain hunters, notably speculative capital from China, have rushed in to scoop up cheap silver, fueling the short-term bounce. Third, lingering geopolitical tensions and inflation concerns keep precious metals attractive as safe havens, shifting market sentiment from fear back to risk-on.
Still, investors should monitor the dollar index, Fed policy moves, and physical delivery pressure to avoid chasing the rally at elevated levels.