Silver resumes its slide, plunging 13%, after short-lived rebound

Core Viewpoint - Silver prices have experienced significant volatility, with a recent drop of up to 16%, following a record-breaking increase earlier in the year, indicating a shift in market dynamics driven by speculative trading rather than physical demand [1][2]. Price Movement - Spot silver prices decreased by 13% to $76.97 per ounce, while New York futures fell over 8% to $77.28 per ounce [1]. - Silver had previously surged by approximately 146% in 2025 before a sharp decline of nearly 30% last Friday [2]. Market Dynamics - Analysts attribute the recent price fluctuations to speculative flows, leveraged positioning, and options-driven trading, rather than an increase in physical demand [2]. - Goldman Sachs noted that as prices fell, dealer hedging shifted from buying into strength to selling into weakness, triggering investor stop-outs and resulting in cascading losses throughout the market [2].