UBS reports that silver's 26% plunge—with intraday swings nearing 38%—is one of the most extreme moves in the metal's modern trading history, with volatility levels not seen in nearly half a century.
What Happened
Silver prices collapsed last Friday in what analysts are calling a historic selloff. After surging above $120 per ounce last week—a gain of over 60% in just one month—the metal tumbled to around $80, wiping out weeks of gains in a single session.
The crash was triggered by a combination of factors: stretched valuations after a parabolic run-up, fading investor demand, and the unexpected news of Kevin Warsh's nomination as the next US Federal Reserve Chair.
UBS Assessment
According to UBS, volatility levels in silver haven't reached these extremes in almost 50 years. The bank attributed the collapse to:
- Stretched prices after a rapid 269% surge from February 2025
- Fading investor demand and profit-taking (similar to the profit-taking that drove gold's $1,000 crash)
- Shifting macro conditions and Fed uncertainty
- Margin calls triggering forced selling
Key Insight: Despite the sharp correction, UBS and other major banks maintain long-term silver price targets well above current levels, with forecasts ranging from $100 to $135 per ounce.
Why This Could Be a Buying Opportunity
Interestingly, some prominent bears have flipped bullish after the crash. Analysts point to a growing disconnect between paper silver prices and physical supply, with actual silver remaining in shortage despite the price collapse.
For long-term investors, this historic dip presents a rare entry point. Physical silver at these levels offers significant upside potential—especially given silver's growing industrial demand from solar panels, EVs, and AI technology — demand so critical that the U.S. Vice President announced a silver price floor. The fundamentals haven't changed; only the price has. Learn more about the silver supply crisis driving long-term demand.
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View Silver Prices →Disclaimer: This article is for informational purposes only and does not constitute financial advice. Silver prices are volatile. Please conduct your own research.