A display of one-kilogram silver bars at the Conclude Zrt bullion dealer in Budapest, Hungary, marked a significant market shift on Monday, February 17, 2025.
'This is a historic move,' stated Jeff Kilburg, CEO and CIO of KKM Financial, highlighting the rarity of such steep movements.
On an intraday basis, silver experienced a striking 15% drop from its peak, marking the largest fluctuation since August 2020 when it fell 16.85%.
Silver futures plunged 8.7% on Monday after briefly surpassing $80 an ounce for the first time in overnight trading, ultimately closing at $70.46 an ounce. This marked the most substantial single-day slide for silver futures since February 2021.
The reversal occurs after a year of notable gains. The precious metal remains over 140% up year-to-date, having started 2025 just above $20 per ounce.
The pullback has been attributed to profit-taking and year-end tax-loss harvesting, which impacted silver's upward trajectory despite its substantial rise earlier on.
Silver has notably outperformed gold this year, with gold futures recently achieving a record high of over $4,550, a 60% increase year-to-date, despite falling about 4.6% to settle at $4,343.6 on the same day.
Various factors have fueled these significant gains. Silver, like gold, is perceived as a safe haven amid escalating geopolitical tensions and economic risks, such as the growing U.S. deficit. Both metals also serve as value stores, hedging against a weakening U.S. dollar influenced by inflation and economic instability. Moreover, the weaker dollar makes these assets more affordable internationally, increasing their demand.
Additionally, robust industrial demand for electronics, particularly solar panels, data centers, and electric vehicles, has bolstered silver's appeal.
Jeff Kilburg from KKM Financial foresees continued strength into 2026, predicting silver could reach $90 or even $100, representing potential gains of about 27% to 40% from its recent levels.
'I consider this a reset or end-of-year readjustment,' said Kilburg. 'I believe both precious metalsâgold and silverâwill persist in climbing.'
'There's a significant supply and demand imbalance that will continue driving silver's price upward,' he noted. 'I don't believe the rally has concluded.'
â With contributions from CNBC's Chris Hayes.