Sharp drop in silver after record-breaking streak! The reason has been revealed

Silver prices have displayed a remarkable performance with a 222% increase since the beginning of the year. Behind this long-standing, uninterrupted rise lies strong industrial demand. Electric vehicles and solar energy panels stand out as the primary sectors rapidly increasing the need for silver.

Following the United States' decision to designate silver as a "critical mineral" in November, China took a similar step. With these developments, silver has evolved from an ordinary commodity into a strategic investment vehicle since the start of the year.

On the final trading day of the year, sharp sell-offs exceeding 7% were observed in silver prices. The prevailing view in the market is that this movement stems from heavy profit-taking rather than a permanent decline. The fact that futures are still trading above long-term averages supports this view.

FACTORS CHALLENGING THE RISE IN SILVER

Commodity market experts point out that silver may have reached peak levels in the short term. It is stated that there are a series of risks ahead of any further upward movement from current prices.

The Chicago Mercantile Exchange (CME) has raised the margin requirement for gold and silver transactions to 6.5. This regulation requires investors to set aside more cash to maintain their positions. The increase in margin requirements may force some investors to sell.

On the other hand, the tax liabilities of investors who have achieved high gains on a global scale thanks to the strong rise in silver are also coming to the fore. For this reason, it is assessed that some selling may occur for tax payments.

Furthermore, the fact that silver prices have reached historic levels may also mobilize individual owners. Those who have silver ornaments or cutlery sets in their homes selling them to convert into cash is cited among the factors that could lead to an increase in supply in 2026.

SILVER OUNCE

Silver per ounce started the day at 76.07 dollars. While it retreated to the 71.46 dollar level during the day, it tested a high of 76.67 dollars. Currently, silver per ounce is trading at 71.76 dollars.

GRAM SILVER

Gram silver entered the day at 105.19 liras. During the day, it saw a low of 98.82 liras and a high of 106.01 liras. Gram silver is currently finding buyers at 99.05 liras.

News Source: 12punto