Silver just dropped nearly 40% in weeks.
Panic… or opportunity?
In late January 2026, $XAG touched a record high near $122/oz.
Today it’s trading around $74–$77.
That’s a brutal 35–40% correction in a very short time.
But here’s the important part:
This looks more like a liquidity flush than a fundamental collapse.
What actually happened?
Silver didn’t fall because demand disappeared.
It fell because:
• January’s rally was parabolic (+60%+ in weeks)
• Traders took heavy profits
• Strong U.S. job data reduced rate-cut expectations
• The dollar strengthened
• Forced liquidations amplified the drop
When markets get crowded and over-leveraged, reversals are violent. That’s not new. That’s how commodities reset.
What about fundamentals?
The structural story hasn’t changed.
• Ongoing supply deficits (mine output lagging demand)
• Massive industrial usage (solar, EVs, electronics, AI hardware)
• Monetary hedge narrative during debt expansion
• Central banks still accumulating gold, indirectly supporting metals complex
Even major banks project higher average prices in 2026 compared to 2025 levels.
Volatility? Yes.
Long-term demand destruction? No clear evidence of that.
Will silver revisit $122?
No one can promise timing. Markets don’t move in straight lines.
But historically, deep corrections inside strong commodity cycles often become accumulation zones — not endings.
When silver fell hard in past cycles, the strongest returns came from those who accumulated during fear, not euphoria.
Right now sentiment is fragile.
That’s usually when positioning starts quietly shifting.
Final Thought
Silver at $120 felt unstoppable.
Silver at $75 feels scary.
Same asset. Different emotion.
If you believe in long-term industrial demand and monetary uncertainty, this kind of reset forces you to ask one question:
Are you reacting to price…
or positioning for the next cycle?
Stay disciplined. Manage risk.
But don’t ignore what panic often creates.
