Silver prices rebound over 12% after dramatic crash last week
Silver prices shot back up over 12% to $86.58 an ounce on February 3, just days after a dramatic 26% crash.
The chaos started when President Trump nominated Kevin Warsh as the next Fed chair, a move that boosted the dollar, and was also driven by separate margin increases from the CME Group that forced leveraged liquidations and led to big sell-offs.
Silver still up more than 170% year-on-year
Even with all the drama, silver is holding steady above $75 amid global tensions keeping demand high and after a hawkish market reaction to the Fed nomination.
Silver's still up more than 170% year-on-year, and if buyers keep stepping in around $78.50, there could be more room to climb.
Traders borrowed money to bet on silver
A lot of traders had borrowed money to bet on silver, so when prices tanked, they were forced to sell fast—causing even bigger swings.
But once prices dipped, bargain hunters jumped in and helped stop the slide.
Warsh might mean less easy money ahead, but strong demand and market quirks are still giving silver support right now.