Silver's Historic Plunge: Biggest Selloff Since 1980

Record-Breaking Decline

Silver experienced its worst intraday selloff since 1980, with futures prices cratering 31.4% to settle at $78.531 per ounce. Concurrently, spot silver slumped 27.1% to $84.70 per ounce.

Overview of the Selloff

The precipitous decline saw both silver benchmarks slide from highs near $122 per ounce within a single trading session. This historic market event was attributed to a combination of factors, with the primary catalyst being the nomination of former Federal Reserve Governor Kevin Warsh as a potential candidate for the central bank's leadership.

Impact on Commodity Markets

The sudden and severe price correction underscored the inherent volatility within the precious metals market. The event highlighted how sensitive assets like silver are to shifts in monetary policy expectations and key appointments at the Federal Reserve, which can influence investor sentiment and trading strategies across global markets.

Summary and Outlook

This record-setting decline serves as a critical case study in market volatility. Investors and analysts will continue to monitor Federal Reserve policy signals and leadership changes closely, as they remain pivotal drivers for the future direction of precious metal prices.

FAQ

Q: What was the main catalyst for the historic silver selloff?
A: The tipping point was the nomination of former Federal Reserve Governor Kevin Warsh as a potential new chief for the U.S. central bank.

Q: How significant was the price drop for silver futures?
A: Silver futures recorded a 31.4% intraday decline, marking the largest single-day percentage drop since 1980.

Source: Investing.com