Ernest HoffmanErnest Hoffman is a Crypto and Market Reporter for Kitco News. He has over 15 years of experience as a writer, editor, broadcaster and producer for media, educational and cultural organizations. Ernest began working in market news in 2007, establishing the broadcast division of CEP News in Montreal, Canada, where he developed the fastest web-based audio news service in the world and produced economic news videos in partnership with MSN and the TMX. He has a Bachelor's degree Specialization in ...

Core Viewpoint - The recent decline in silver prices has been more pronounced than that of gold, indicating underlying factors affecting the precious metals market, particularly the industrial demand for silver [1][2]. Group 1: Price Movements - Silver fell to $66.93 per ounce on March 19, experiencing a $10.84 drop in a single session, following a 3% decline on March 18 [2]. - The gold-to-silver ratio has widened significantly, suggesting that silver is facing additional selling pressure beyond the general precious metals selloff [2]. Group 2: Market Dynamics - The Federal Reserve's decision to hold rates steady at 3.5% to 3.75% and signal only one rate cut for 2026 negatively impacts both gold and silver, with silver being affected more severely due to its industrial demand [4][5]. - Approximately 60% of silver demand is derived from industrial uses, which are sensitive to macroeconomic conditions; a hawkish environment leads to weakened industrial demand alongside investment demand [5]. Group 3: Speculative Positioning - The current selloff in silver is attributed to the unwinding of speculative positions built during a significant rally in 2025, rather than a fundamental change in its long-term outlook [6]. - Silver reached an all-time high of $121.60 per ounce on January 29, 2026, driven by safe-haven demand and speculative buying, with a remarkable increase of 135% throughout 2025 [7].