Silver Plunges More Than 30%, and Analysts See More Pain Ahead

The price of silver plummeted by over 30% on Friday, marking a historic drop. This drastic fall was attributed to a strengthening US dollar and investor reactions to President Donald Trump‘s Federal Reserve pick.

Despite the severe drop, commodities analyst and the managing director at CPM Group Jeffrey Christian, anticipates the decline could persist.

Christian told the Business Insider that the prevailing worries about inflation, the robustness of the US dollar, and other risks will continue to push investors towards silver as a safe haven.

However, he warns that if prices fall further, it could trigger a large-scale exit from the market. In a worst-case scenario, Christian predicts silver prices could tumble to $68 an ounce, indicating an additional 17% drop.

CPM Group is closely watching several indicators that may signal further declines in the silver market. These include signs of diminishing investor interest in silver, increasing inventories, and shifts in trading momentum in silver, bonds, and silver-related ETFs.

Despite the recent plunge, Christian maintains that silver prices could stay high or even climb through 2026.

However, he cautions that the market’s behavior is not surprising and that investors should brace themselves for potential further declines.

Why It Matters: The recent plunge in silver prices is a significant event in the commodities market. The drop, driven by a strengthening US dollar and investor reactions to Trump’s Federal Reserve pick, has raised concerns about the future of silver as a safe haven investment.

The potential for further declines, as suggested by Christian, could have a profound impact on investors and the broader market.

The situation warrants close monitoring of the indicators identified by CPM Group, as they could signal additional declines in the silver market.