From a sharp rise to a painful plunge: What drives the price of silver?

The price of silver has fallen by more than half from its January peak, dropping below $50 per ounce. The article analyzes the factors: industrial demand, rigid supply, interest rates and the dollar, and speculative activity. The crash on January 30 was triggered by the appointment of Kevin Warsh to the Fed and profit-taking.

The price of silver has fallen by more than half from its January peak, with futures dropping below $50 per ounce last weekend. The article analyzes the factors behind the volatility: high industrial demand (solar panels, electric vehicles, electronics, and artificial intelligence) alongside a rigid supply as a byproduct of mining other metals. The sharp rise in 2025 was accelerated by speculative activity, but the crash on January 30 was triggered by the appointment of Kevin Warsh as Fed chair, higher margin requirements, and profit-taking. The article compares the situation to similar events in 1980 and 2011, noting that the silver shortage has not yet been resolved, but high interest rates and a strong dollar may continue to weigh on prices.