Silver Plunges Rapidly — Intraday Drop Over 14%! Analysts Warn: Be Careful Buying the Dip or Get Trapped

Silver prices fell sharply on Thursday, breaking the rebound momentum from the prior two days — signaling it may be tough for the metal to regain upward traction anytime soon.

As of press time, London silver fell more than 14%, dropping from a high of $90/oz to $77/oz. The metal had already crashed nearly 30% in just two days from last Friday to Monday, triggering a broad pullback across the metals sector.

Gold also declined Thursday, with London spot gold down over 2% and breaking below $4,900/oz, though its drop was far milder than silver's.

Analysts point to speculative fund flows, leveraged positions, and options-driven trading as the main drivers of recent silver volatility — with physical demand playing a relatively small role. Amid widespread profit-taking and growing investor caution, silver will struggle to regain bullish momentum in the short term.

Consolidation Expected

Although no major news drove the move, note that recent precious metals volatility doesn't require headlines to fuel it. The sharp pullback since last week has already triggered a volatility shock that will take time to fully unwind in the market.

Gold and silver prices are now likely entering a prolonged consolidation phase. Analysts warn that dip-buyers should stay cautious during this period and avoid over-trading — especially when sentiment is primarily driven by profit-taking.

Additionally, Goldman Sachs noted that the timing of the swings indicates Western fund flows — not Chinese speculation — were the main force behind most of the upside and downside, with the bulk of violent moves occurring during China futures market closures.

However, given silver's more than 140% surge in 2025, the current consolidation also aligns with market logic. StoneX market intelligence head Rhona O’Connell warned that silver prices are severely overvalued and caught in self-reinforcing euphoria — and silver has a history of dramatic drops.

Moreover, renowned investor and *The Big Short* inspiration Michael Burry said Bitcoin's recent decline could trigger a chain reaction across markets, forcing institutional investors and corporates to sell other assets to cover losses — with gold and silver likely hit first.