Silver prices plunged 30% on January 30, marking the worst drop since 1980. Wall Street legends predicted the decline after a parabolic rally. Now, they’ve shifted to a bullish outlook, seizing opportunities in silver’s volatile market. The chaos exposed a disconnect between paper and physical silver markets, driven by industrial demand for next-gen tech.
As silver supply remains in deficit, industrial buyers are demanding physical metal over cash, creating a scramble that drained vaults. The paper-to-physical ratio surged, reflecting the disconnect. Margin requirements were hiked, ending cheap speculation and triggering forced liquidation among highly leveraged traders. The chaos may continue due to ongoing supply shortages.
Despite some miners ramping up production, silver supply is expected to remain impaired this year. Big producers like Fresnillo and Hecla Mining have cut guidance, while others plan to restart production. Pan American Silver anticipates increased production in 2026. The story was published by TheStreet on Jan 31, 2026, highlighting the evolving dynamics in the silver market.
Read more at Yahoo Finance: Why silver bears just flipped bullish after record plunge
