Silver’s Volatile Surge and Sudden Plunge: A Veteran Trader’s Perspective

Peter Brandt, a seasoned commodities trader with nearly five decades of experience, watched as silver prices shattered records—only to collapse within hours. The metal breached $80 an ounce for the first time ever on Monday before plummeting to $70 by day’s end. A 10% rebound followed on Tuesday, pushing prices back to $78. This year’s 150% rally in silver futures now bears the scars of a sharp correction.

The trigger? CME’s margin hike forced metals traders to post additional collateral, squeezing overleveraged positions. Brandt, who boasts 840,000 followers on X, noted the cyclical inevitability of breaking points: "Even the most stubborn holders eventually capitulate when pain exceeds conviction." His cautionary tone lingered—whether this marks silver’s definitive top remains uncertain.

Precious metals’ broader rally continues unabated. Gold and silver’s allure grows as interest rates decline, though Monday’s whipsaw action underscores how quickly euphoria can unravel. For Brandt, the lesson is timeless: parabolic moves breed violent reversals.