Silver Plummets Eight Percent in Broad Precious Metals Selloff

Volatility and Industrial Hedge

The sharp decline reflects silver's inherent volatility during market corrections. While the metal remains up over 150% year-on-year, the year-end flush of speculative long positions has hit the market hard. However, industrial demand for solar and AI hardware continues to provide a long-term supply-side deficit narrative.

Support and Resistance Watch

Silver is now testing support near the $72 mark. Analysts suggest that the speed of the descent may lead to a short-term 'dead cat bounce' in early January as industrial users take advantage of the lower prices to secure physical stock for Q1 2026.