Image: Armin Kübelbeck, Wikimedia Commons, CC BY-SA 3.0
After reaching an all-time high of $121.65 per ounce (oz) on January 29, silver prices have fallen sharply in recent days, falling to $79.44/oz this morning.
The downturn was anticipated by two analysts interviewed by pv magazine on January 27, which warned that the steep rally of previous weeks could abruptly reverse in the coming days.
One of the two analysts, Mike McGlone, senior commodity strategist at Bloomberg Intelligence, said the price could stabilize around $50/oz, although he gave no timeframe for when this new trend could materialize.
“A return to $50 seems like a normal path for the commodity known as the ‘devil metal’ due to its volatility,” he said. pv magazine.
Rhona O’Connell, head of market analysis for EMEA and Asia at StoneX, said on January 27 that investors may soon reconsider their rush to silver. She explained that speculative buying had pushed the metal into risky territory, leaving prices vulnerable to a sharp correction. O’Connell also said fears of possible U.S. tariffs fueled the recent rally, sending COMEX inventories higher as metal flowed into the U.S. Further gains are unlikely, she added, even dismissing $100/oz as unsustainable and warning of a potentially serious price reversal.
Silver prices have risen approximately 130% over the past six months and approximately 243% over the past year. The average silver price was $28.27/oz in 2024, $23.38/oz in 2023 and $21.80/oz in 2022.
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