Silver Prices Plunge 13% After Short-Lived Rebound

The white metal continues to reel from excessive volatility, drawing comparisons to meme stock frenzy.

Published on Feb. 4, 2026

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Silver prices slid as much as 16% on Thursday, snapping a two-day rebound, as the white metal continues to reel from excessive volatility. Spot silver prices were last down 13% at $76.97 per ounce, while futures in New York were over 8% lower at $77.28 per ounce. Analysts point to speculative flows, leveraged positioning and options-driven trading, rather than physical demand, as key drivers of the recent price swings.

Why it matters

The volatility in silver prices has drawn growing comparisons to meme stocks such as GameStop, raising concerns about the sustainability of the metal's price levels and the potential for other buyers to get "burned" by the frenzy.

The details

Silver had been on a record-breaking spree before crashing almost 30% last Friday. In 2025, it gained about 146%. Analysts say the larger correction in silver compared to gold is due to tighter liquidity conditions in the London market, which magnified price swings. The timing of the volatility suggests Western flows, rather than Chinese speculation, are behind much of the build-up and unwind, as most of the more violent moves occurred while Chinese futures markets were closed.

  • On Thursday, silver prices slid as much as 16%.
  • Last Friday, silver prices crashed almost 30%.
  • In 2025, silver gained about 146%.

The players

Goldman Sachs

An investment bank that provided analysis on the silver market volatility.

Rhona O'Connell

Head of market Intelligence at StoneX, who warned that silver prices had detached from sustainable levels.

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What they’re saying

“As prices fell, dealer hedging flipped from buying into strength to selling into weakness, investor stop-outs were triggered, and losses cascaded through the system.”

— Goldman Sachs (CNBC)

“Silver was massively over-valued and in a self-fulfilling frenzy; it is however notoriously fickle and its history is littered with examples of price crashes. At present it is behaving like Icarus and to extend the analogy there is a strong risk of other buyers getting burned.”

— Rhona O'Connell, Head of Market Intelligence, StoneX (CNBC)

The takeaway

The volatility in silver prices has drawn comparisons to the meme stock frenzy, raising concerns about the sustainability of the metal's price levels and the potential for other investors to get caught in the downturn. The sharp correction highlights the speculative nature of the recent silver rally and the need for caution in navigating such volatile markets.