Silver price, rapid reversal overnight after first-ever 80 dollars per troy ounce breakthrough

One-day fluctuation 15% 'historic plunge'

Selling volumes pour in for year-end profit-taking

Silver prices, which had shown the strongest rise this year, underwent a sharp adjustment overnight immediately after surpassing 80 dollars per troy ounce for the first time in history.

On the 29th (local time), silver futures exceeded 80 dollars per troy ounce in overnight trading for the first time, but then plunged and traded at 71.79 dollars, down 7% on the day. Based on the intraday high and low, the one-day range reached 15%. This is the largest one-day move since the 16.85% plunge in August 2020.

Jeff Kilburg, chief executive officer (CEO) and chief investment officer (CIO) of asset management and investment advisory firm KKM Financial, called it a "historic move" and said "such large volatility has not appeared in a long time."

The plunge is analyzed as the result of selling volumes pouring in at once for year-end profit-taking and tax reduction. Since silver prices have risen sharply this year, investors closing positions for year-end are said to have triggered the price adjustment.

Nevertheless, silver prices are still more than 140% higher compared with the start of the year. Silver began trading in early 2025 in the low 20 dollars per troy ounce. With such a surge, silver posted a higher return than gold this year.

Gold also continued a bullish trend. February gold futures surpassed 4550 dollars per troy ounce for the first time this month, and the year-to-date gain exceeds 60%. However, gold futures also fell 4.6% that day in a correction.

Experts cite rising geopolitical tensions, an expanding U.S. fiscal deficit, and inflation concerns as the reasons behind the surge in silver and gold. The two metals are traditionally seen as safe-haven assets and stores of value, and when the dollar weakens, demand increases as a hedge. Dollar weakness also lowers purchasing burdens for non-dollar countries, which can spur additional demand.

Additionally, increased industrial demand from new industries such as solar panels, data centers, and electric vehicles also supported the rise in silver prices.

Kilburg predicted that these upward factors are likely to continue into 2026. He forecast that silver prices could rise to 90 dollars per troy ounce, and even to 100 dollars. That means roughly 27% and 40% upside potential, respectively, compared with recent prices.

He said "this adjustment is a temporary pause at year-end," and "both gold and silver will continue on an upward trajectory in the medium to long term." He added, "There are structural supply constraints and strong demand at the same time," and "it is difficult to say the rally is over."

New York=Shin-young Park, correspondent nyusos@hankyung.com