Silver tops $80 for first time, then stages dramatic reversal overnight
Silver futures experienced a significant reversal on Monday, sliding 6.8% after reaching an all-time high of over $80 per ounce in overnight trading. The precious metal is now trading at $71.97 per ounce, marking a historic intraday drop of 15%. Jeff Kilburg, CEO of KKM Financial, described the move as unprecedented, emphasizing the magnitude of the decline.
The pullback in silver prices can be attributed to profit-taking and tax-loss harvesting at the end of the year, which offset the substantial gains the metal had previously made. Despite this correction, silver remains up more than 140% year-to-date, starting the year at just above $20 per ounce. This performance has outpaced even gold, which has seen a 60% increase in futures prices for February.
The surge in silver prices can be attributed to several factors, including its status as a safe haven asset amidst geopolitical uncertainties and economic risks. Silver, along with gold, is considered a store of value and a hedge against inflation and a weakening US dollar. Furthermore, strong industrial demand for silver in electronics, such as solar panels, data centers, and electric vehicles, has bolstered its price.
Looking ahead to 2026, Kilburg predicts further upside for silver, with potential price targets of $90 or even $100 per ounce. He anticipates that the supply-demand dynamics and the ongoing industrial demand for silver will continue to drive its price higher in the coming year.
In conclusion, despite the recent pullback in silver prices, the overall outlook remains bullish for the precious metal. The unique properties of silver as both a safe haven asset and an industrial metal position it favorably for future price appreciation. Investors may continue to monitor silver prices closely as they navigate the evolving market landscape.
— CNBC’s Chris Hayes contributed to this report.
