Why silver bears just flipped bullish after record plunge

Core Viewpoint - Silver experienced a significant 30% drop on January 30, marking the worst decline since 1980, following a nearly 250% price increase over the past year [1]. Group 1: Market Analysis - The decline in silver prices was anticipated by market analysts, including Peter Brandt and Marko Kolanovic, who had previously issued bearish forecasts [2]. - Following the drop, both analysts have shifted their outlook to bullish, indicating a potential for a short-term bounce in silver prices [2][6]. - The volatility in silver prices has created trading opportunities for both bullish and bearish investors [3]. Group 2: Predictions and Strategies - Marko Kolanovic predicts a potential 50% decline in silver prices over the next year, while Brandt suggests that the recent sell-off may have been overdone, leading to a possible short-term rally [5][6]. - Brandt emphasizes that the current market conditions differ from those in 2011, suggesting that a more durable price increase may occur after a washout of speculative positions [8]. Group 3: Structural Issues - The recent sell-off highlighted a significant disconnect between paper contracts and physical silver supply, referred to as the "Great Divorce" [9].