After reaching an all-time high of $121.62 on January 29, 2026, silver suffered one of its sharpest short-term collapses in recent memory.
The white metal plummeted to around $64 by February 6, a drawdown of nearly 47% in just over a week following a single policy development.
President Trump’s nomination of inflation-hawk Kevin Warsh as the next Federal Reserve Chair on January 30 triggered the sudden and dramatic sell-off across precious metals markets.
Warsh’s reputation for prioritizing inflation control over monetary loosening spooked investors who had been piling into silver as a hedge against a weaker dollar and elevated geopolitical risk.
Silver’s record-breaking January run was fueled by a combination of trade tensions between the US and Europe, Trump’s public statements about possible military airstrikes on Iran, and surging institutional investment demand.
Despite the steep correction, several major analysts and industry executives argue the long-term bull case for silver remains firmly intact and that prices could reach $130 per ounce within the next year.
Keith Neumeyer, CEO of First Majestic Silver, has been among the most vocal proponents of that view, arguing the metal could hit $100 or even reach as high as $130 per ounce.
Bank of America points to the gold-silver ratio as a key indicator, noting it remains stretched at around 80:1, suggesting silver looks historically cheap relative to gold.
The bank argues that if the ratio drops back to the 2011 low of 32:1, silver could rise to approximately $135 within 12 months, representing a more than double from current levels.
Industrial demand continues to underpin the structural case for silver, now accounting for roughly 60% of total annual consumption globally across a wide range of applications.
Solar panels alone consumed over 230 million ounces of silver in 2024, cementing the energy transition as one of the most powerful demand drivers the silver market has ever seen.
The Silver Institute projects that solar applications alone could push total silver demand to 250 million ounces per year by 2030, further tightening an already significant structural supply deficit.
That supply-demand imbalance, combined with renewed institutional interest and persistent geopolitical uncertainty, gives bulls confidence that silver’s January peak may eventually be treated as a floor rather than a ceiling.
