A selection of one kilogram silver bars at Conclude Zrt bullion dealer arranged in Budapest, Hungary, on Monday, Feb. 17, 2025.
Akos Stiller | Bloomberg | Getty Images
One of the best trades of the year just staged a massive reversal.
Silver futures fell 8.7% on Monday, after topping $80 an ounce for the first time ever in overnight trading. The precious metal settled at $70.46 an ounce. It was the worst day for silver futures since February 2021.
The move is even more dramatic on an intraday basis. Peak to trough, silver plunged 15%, the biggest high-to-low change going back to August 2020 when it dropped 16.85%.
“This is a historic move,” said Jeff Kilburg, CEO and chief investment officer of KKM Financial. “We haven’t seen a move like this in a long time.”
Silver futures for March, year to date
He attributed the pullback to profit-taking, as well as tax-loss harvesting at the end of a calendar year, that dented silver’s advance after its huge run-up. The precious metal is still higher by more than 140% year to date. It started 2025 trading just above $20 per ounce.
That has helped the precious metal outperform even gold this year. Gold futures for February, which recently topped $4,550 for the first time ever this month, are higher by more than 60% this year.
Gold futures dropped about 4.6% on the day, settling at $4,343.6.
There are a number of reasons for the huge gains. Alongside gold, silver is viewed as a safe haven for investors wary of heightened geopolitical tensions and other risks, like the ballooning U.S. deficit. The two metals are also viewed as stores of value, meaning they can act as hedges against a U.S. dollar that weakens due to inflation or economic uncertainty. Additionally, a weaker greenback also makes the assets cheaper for other countries, driving up demand.
What’s more, silver benefited from strong industrial demand for electronics such as solar panels, data centers and electric vehicles.
KKM Financial’s Kilburg expects those tail winds can continue to push silver higher in 2026. He thinks silver can climb to $90 or even $100, implying upside of roughly 27% or 40%, respectively, from where it was last trading.
“I think this is a reset, a reprieve, just a one-day end-of-year move. But I think both precious metals — gold and silver — continue their trajectory higher,” said Kilburg.
“There’s a dramatic supply issue. There’s a tremendous demand issue. And you couple those two together, that is going to push silver higher,” he said. “So, I don’t think the rally is over by any means.”
