Silver Faces Worst Selloff Since Nineteen Eighty on Massive Liquidation

Gamma Squeeze Reversal

The same options-driven 'gamma squeeze' that propelled silver higher has now operated in reverse. As prices broke key support at $100 and $90, dealers were forced to dump futures to re-hedge, creating a self-reinforcing downward spiral that devastated late-entry long positions.

Industrial Deficit Persistence

Despite the price collapse, physical fundamentals remain tight. The Silver Institute still projects a massive 240 million ounce deficit for 2026, suggesting that while the speculative froth has been cleared, a physical floor may emerge near the $75 level.