Silver Faces Brutal Selloff as Speculative Bubble Bursts

Liquidation and Margin Squeeze

The downturn has been exacerbated by a series of margin increases on major exchanges, forcing leveraged traders to liquidate long positions. This 'gamma flush' has seen silver underperform gold significantly during the broader metals rout.

Industrial Demand Floor

While the speculative froth is being cleared, the long-term industrial case for silver in the solar and electronics sectors remains intact. Analysts expect a 'hard floor' to emerge near $65 as green energy mandates continue to drive underlying consumption.