Silver prices witnessed a brutal sell-off on Thursday, plunging 12.2% in a short span and erasing nearly $760 billion in implied value, as global markets reeled under escalating geopolitical tensions involving Iran and aggressive profit booking on massive volumes.
The sharp fall came after silver had surged to record highs earlier this week, driven by strong safe-haven demand, supply tightness, and spillover strength from gold. However, the rally quickly unraveled as market sentiment flipped sharply risk-off, triggering one of the steepest intraday corrections seen in recent years.
One of the key triggers behind the crash was intense profit booking after a parabolic rally. Silver prices had moved far ahead of short-term fundamentals, attracting heavy speculative positioning. Once prices began to slip, traders rushed to lock in gains, unleashing heavy selling pressure across futures markets.
The decline was compounded by rising geopolitical stress linked to Iran. Heightened tensions between Iran and Western nations unsettled global markets, leading to sharp moves across equities, commodities, and cryptocurrencies. As volatility spiked, investors reduced exposure across asset classes, including highly volatile commodities like silver.
Silver’s fall was further amplified by forced liquidation and margin pressure. The rapid intraday drop likely triggered stop-loss orders and margin calls, accelerating downside momentum. Given silver’s thinner liquidity and higher leverage compared with gold, price moves tend to be sharper once selling accelerates.
The scale and speed of the correction highlight how quickly crowded trades can unwind during periods of elevated uncertainty. With silver now sharply lower from recent peaks, market participants remain cautious, closely tracking geopolitical developments and volatility levels for signs of stabilisation or further sharp swings.
