Silver Drops Further After 26% Plunge
2026-02-02 00:20
By
Jam Kaimo Samonte
1 min. read
Silver tumbled more than 10% to around $75 per ounce on Monday, nearly wiping out year-to-date gains and extending Friday’s 26% plunge which was its biggest one-day decline ever.
The crash followed news that US President Donald Trump planned to nominate Kevin Warsh as the next Federal Reserve chair, widely viewed as the more hawkish option.
Profit-taking also emerged after a relentless rally that had pushed silver to historic highs.
That advance was driven by a structural deficit in the silver market and the so-called debasement trade, as investors rotated into physical assets from currencies and bonds amid concerns over rising government debt.
Geopolitical and economic uncertainties, along with worries about the Fed’s independence, reinforced silver’s safe-haven appeal.
Momentum buying further amplified gains, with a wave of purchases from Chinese speculators adding froth to the rally and intensifying the sell-off as sentiment reversed.