what happened to silver prices
Silver prices have experienced dramatic volatility in early 2026, surging to record highs before a sharp correction around February 1.
Recent Surge Drivers
Silver climbed to an all-time high near $122 per ounce in January 2026, fueled by a massive supply deficit (fifth straight year, totaling 820 million ounces), China's new export controls implemented January 1, and booming industrial demand from solar panels, EVs, and tech. Central banks' policies and physical shortages pushed premiums over paper prices, with AI models forecasting $113–$128 (or even $185) by early February before the pullback. Investors piled in amid safe-haven buying and trade tensions, mirroring gold's rally but amplified by silver's dual role as money and industrial metal.
The Sharp Drop
On January 31–February 1, silver plunged nearly 19% to around $84.63 USD/t.oz (down 26.91% daily), hitting Rs 3.12 lakh/kg in India after peaking at Rs 4.04 lakh/kg. Profit-booking hit hard ahead of India's Union Budget 2026, compounded by a stronger US dollar, global market routs, and upcoming CME margin hikes (silver to 15–16.5% from 11–12.1% on Feb 2). Despite the tumble, January closed up 30.5% monthly and 170% yearly.
Forum Buzz & Investor Views
Silverbugs on Reddit are stunned by the swings—older threads from 2025 questioned endless climbs ("Why is silver shooting up?"), while one laments market disconnects ("gold/silver should rise when stocks fall... until it doesn't"). Bullish voices cite structural deficits and China's moves; bears point to overleveraged futures and budget jitters. Multi-viewpoint: Optimists see this dip as a buy (projected 2026 deficit 95–200M oz), while skeptics warn of manipulated paper markets.
Factor| Bull Case| Bear Case
---|---|---
Supply| 820M oz deficit + China curbs1| Margin hikes squeeze specs5
Demand| Solar/EV boom inelastic1| Profit-taking post-peak3
Price Outlook| $113+ by Feb end1| More downside on dollar strength3
Quick Timeline
- 2025 : Hits $54–$60 highs on industrial surge.
- Jan 2026 : Peaks ~$122 amid deficits/export news.
- Feb 1 : Crashes to ~$85 on budget fears.
- Forward : Watch CME margins, Budget fallout, China flows.
TL;DR : Silver rocketed on shortages and demand, then cratered 19–27% on profit-taking and macro pressures—classic volatile commodity action, but fundamentals stay bullish long-term.
Information gathered from public forums or data available on the internet and portrayed here.