Silver Rallies After Worst Day In 5 Years — Metals Bounce Back

Core Viewpoint - Silver futures experienced a significant recovery after a historic plunge, marking the sharpest single-day decline in five years, driven by multiple market factors [1][3]. Group 1: Market Dynamics - The CME Group's increase in margin requirements raised the cost of a single silver contract to $25,000, leading to forced liquidations and profit-taking among traders [3]. - A flash crash on Monday saw silver prices drop from nearly $84/oz to the $72 range due to rumors of a massive margin call and geopolitical developments affecting its safe-haven status [4]. - Other metals, including gold, copper, and platinum, also experienced declines during the same period [5]. Group 2: Recovery and Performance - By Tuesday, silver prices rebounded over 5%, driven by investor focus on long-standing structural supply deficits in the market [6]. - The year 2025 has been exceptional for metals, with silver gaining 164%, platinum 147%, gold 66%, and copper 43%, attributed to various demand drivers such as solar energy, supply deficits, central bank buying, and electrification [6]. - Gold and platinum also saw recoveries, with gold supported by central bank accumulation and geopolitical hedging, while platinum continued to rise as a "catch-up" favorite [7].