After reaching an all-time high of $$121.65 per ounce (oz) on Jan. 29, silver prices have fallen sharply in recent days, dropping to $79.44/oz this morning.
The downturn had been anticipated by two analysts interviewed by pv magazine on Jan. 27, who warned that the steep rally seen in previous weeks could reverse abruptly in the days ahead.
One of the two analysts, Mike McGlone, senior commodity strategist at Bloomberg Intelligence, said the price could stabilize around $50/oz, although he did not provide a timeframe for when this new trend might materialize.
“Reversion toward $50 appears as a normal path for the commodity known as the ‘devil's metal' due to its volatility,” he told pv magazine.
Rhona O’Connell, head of market analysis for EMEA and Asia at StoneX, said on Jan. 27 that investors might soon rethink their rush into silver. She explained that speculative buying had pushed the metal into risky territory, making prices vulnerable to a sharp correction. O’Connell also said fears of potential U.S. tariffs fueled the recent rally, swelling COMEX inventories as metal flowed into the U.S. Further gains are unlikely, she added, dismissing even $100/oz as unsustainable and warning of a potentially severe price reversal.
Silver prices surged by approximately 130% in the past six months and around 243% over the past year. The average silver price was $28.27/oz in 2024, $23.38/oz in 2023, and $21.80/oz in 2022.
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