Silver had been on a record-breaking spree before crashing almost 30% last Friday. In 2025, it gained about 146%, data from LSEG showed.<\/p>\n
Analysts point to speculative flows, leveraged positioning and options-driven trading, rather than physical demand, as key drivers of the recent price swings.<\/p>\n
“You’d seen a lot of speculator positions build up … I don’t think it’s been fully flushed out,” said Sunil Garg, managing director of Lighthouse Canton.<\/p>\n
While Garg says the fundamental case for silver demand still holds, he advises to wait a bit more for the speculative positions to get “wiped out” first. Silver has a wide range of industrial and technological uses, extending from solar power, catalysts and electronics, amongst others.<\/p>\n
“The margin requirements being raised by various metals exchanges around the world … that’s just something that’s going to kill off some of the speculation,” said Garg. The CME Group\u00a0has raised margin requirements<\/a>\u00a0following the steep sell-off last Friday.<\/p>\n “As prices fell, dealer hedging flipped from buying into strength to selling into weakness, investor stop-outs were triggered, and losses cascaded through the system,” Goldman Sachs said in a note on Wednesday.\u00a0<\/p>\n Stock Chart IconStock chart icon Silver prices in the past one year<\/p>\n Silver’s correction has been larger than gold’s due to tighter liquidity conditions in the London market, which magnified price swings.<\/p>\n Goldman added that the timing of the volatility suggested Western flows, rather than Chinese speculation, are behind much of the build-up and unwind, noting that most of the more violent moves occurred while Chinese futures markets were closed.<\/p>\n The volatility in silver prices has drawn growing comparisons to meme stocks such as GameStop, the video-game retailer that became a global phenomenon in 2021 after retail traders on Reddit piled in en masse, sending its shares soaring far beyond what traditional valuation models could justify.<\/p>\n Market watchers had warned that prices were detached from sustainable levels, turning the silver trade increasingly meme-like.<\/p>\n Spot gold<\/a> and futures<\/a> declined a little over 1% to $4,887.03 and $4,887.40 per ounce, respectively.<\/p>\n","protected":false},"excerpt":{"rendered":"Silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich,…\n","protected":false},"author":2,"featured_media":274872,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[941,114,357,56621,4698,4635,85,46,190,98023,1886,38669,116963,2966],"class_list":["post-274871","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-breaking-news-markets","tag-business","tag-business-news","tag-cme-group-inc","tag-gamestop-corp","tag-goldman-sachs-group-inc","tag-il","tag-israel","tag-markets","tag-metal-commodities","tag-new-york","tag-reddit-inc","tag-silver-comex-sep25","tag-world-markets"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/274871","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=274871"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/274871\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/274872"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=274871"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=274871"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=274871"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"hide](\"https:\/\/static-redesign.cnbcfm.com\/dist\/a54b41835a8b60db28c2.svg\")
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