The silver market has witnessed its most severe sell-off in recent memory. In a matter of days, the metal’s value plummeted approximately 40% from its record peak in late January—a crash scenario that caught even seasoned commodity traders off guard. Yet, as panic gripped futures exchanges, physical demand for the metal held firm. This stark contradiction lies at the heart of the current turmoil.
Key Data Points:
* The silver price has declined roughly 40% since its late-January record high.
* Current price: $73.80 USD (following significantly lower interim quotes).
* Weekly loss: -13.33%.
* Shanghai Futures Exchange inventories have dropped from 450 to 423 tonnes despite the price collapse.
Physical Shortages Defy Futures Panic
A completely divergent narrative is unfolding in the physical market. Stockpiles registered with the Shanghai Futures Exchange continue to shrink, falling from nearly 450 tonnes to approximately 423 tonnes. This suggests industrial consumers are capitalizing on lower prices to secure supply.
The fundamental demand from photovoltaic, electronics, and electric mobility sectors remains undiminished. China, a top global consumer, contends with a structural supply deficit. Industrial applications account for more than half of worldwide silver consumption—a stabilizing buffer that has supported prices during past corrections.
Should investors sell immediately? Or is it worth buying Silber Preis?
Leverage Unwinds, Triggering a Cascade
The dramatic price collapse originated from a toxic blend of speculative excess and forced liquidations. Following the rally in 2025 and early 2026, futures exchanges raised margin requirements for silver contracts. This forced the closure of highly leveraged positions, often at any available price, initiating a self-reinforcing wave of selling.
Macroeconomic pressures added fuel to the fire. Market speculation pointing toward a more restrictive policy path from the U.S. Federal Reserve bolstered the dollar, diminishing the appeal of non-yielding precious metals. The combination of technical forced selling and shifting fundamental sentiment hit the relatively narrow silver market harder than gold.
The Growing Chasm Between Paper and Metal
This extreme volatility highlights a critical fault line in modern commodity trading: the growing disconnect between finance-driven futures contracts and tangible, real-world demand. While speculative traders liquidate positions in a panic, the industrial base for silver is demonstrating unexpected resilience. The coming trading sessions will reveal whether this physical demand possesses the strength to permanently absorb the speculative selling pressure.
Ad
Silber Preis Stock: Buy or Sell?! New Silber Preis Analysis from February 6 delivers the answer:
The latest Silber Preis figures speak for themselves: Urgent action needed for Silber Preis investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from February 6.
Silber Preis: Buy or sell? Read more here...