Silver tops $80 for first time, then stages dramatic reversal overnight
Silver slid more than 8% on Monday, after topping $80 for the first time ever in overnight trading.
TL;DR
- Silver futures dropped 7% on Monday, reaching a low of $71.79 after an intraday plunge of 15% from an all-time high above $80 an ounce.
- This is the largest high-to-low change for silver since August 2020.
- The pullback is attributed to profit-taking and year-end tax-loss harvesting.
- Despite the drop, silver is up over 140% year-to-date.
- Silver has outperformed gold this year, which is up over 60% year-to-date.
- Factors driving silver's gains include its safe-haven status, its role as a store of value against inflation and a weakening U.S. dollar, and strong industrial demand.
- Analysts predict silver could reach $90 or $100 due to continued demand and supply issues.