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| Above, Morgan and Peace silver dollars. Photo by Armand Vaquer. |
Silver and gold dropped in price last Friday. This is making investors wonder what's going to happen next.
This may be a short-term correction or, possibly, a long-term trend.
According to CoinWeek:
Gold and silver prices suffered one of their sharpest single-day declines in decades on Friday as markets reacted to shifting expectations around U.S. monetary policy and a rapidly strengthening dollar.
The selloff accelerated after President Donald Trump confirmed Kevin Warsh as his nominee to lead the Federal Reserve. The announcement eased concerns about political pressure on the central bank and triggered a broad repositioning across global markets.
Silver Hit Hardest
Silver experienced the most severe losses. Spot prices fell roughly 28% to near $83 per ounce, while silver futures dropped more than 31%, marking the metal’s worst trading day since 1980.
The scale of the decline reflects how crowded the silver trade had become. After weeks of rapid gains, leverage among short-term traders amplified the downside as prices began to fall, forcing liquidations and margin-related selling.
Silver is still way over double in spot price from what it was a year ago, so I doubt it is time to panic. Silver was at $28.92 per ounce on January 1, 2025 (Source: CBS News).
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