The precious metals markets witnessed a dramatic shift in the past few hours, with silver prices plummeting by more than 7% in a single trading session, immediately after hitting a record high of $93.75 per ounce . This sharp decline has sparked widespread speculation among investors about whether this move is merely a technical correction or the beginning of a new downward trend.
Trump changes the rules of the game
The main driver of this decline came after reports of a change in US President Donald Trump's trade strategy. After markets had priced metals in anticipation of immediate and harsh tariffs, Trump announced a delay in imposing these tariffs on critical metals, primarily silver and tin.
According to a Bloomberg report, the White House now favors pursuing bilateral agreements with trading partners instead of engaging in open trade wars. The new strategy includes proposing a "minimum price" as an alternative to direct tariffs, a strategic move aimed at ensuring the stability of vital supply chains for the US defense and security industries and avoiding shocks to manufacturing costs.
Why silver? Its industrial and strategic importance
To understand the depth of this price movement, one must consider the broader context of silver's importance. Silver is not only viewed as a safe haven like gold, but it is also an indispensable industrial metal in the modern economy. Silver plays a pivotal role in the manufacture of solar panels (clean energy) , semiconductors, and batteries, making it a crucial element in the global transition to renewable energy.
The frantic rise in silver by about 20% in just 4 sessions , and its recording of annual gains exceeding 150% during 2025 , was not just speculation, but reflected real fears of a shortage of global supply against increasing industrial demand, which made the previous threat of tariffs like oil poured on the fire.
Profit generation and technical pressures
The sudden shift in tone from the US administration has led to a widespread wave of profit-taking . Financial analysts believe the current decline reflects normal technical pressures stemming from short covering and margin requirements on global exchanges, rather than indicating weakness in market fundamentals or a drop in actual demand for the metal.
A look ahead: between caution and optimism
Despite the recent decline, the medium-term outlook for silver prices remains very positive. The market continues to suffer from a structural supply deficit , while industrial demand continues to grow, particularly from the solar energy sector, which consumes enormous quantities of silver annually.
However, caution remains necessary, as the report confirmed that the option of imposing tariffs is still a "pressure card" on the table in case bilateral trade negotiations falter, keeping markets in a state of extreme anticipation and caution during the coming period, awaiting the outcome of economic diplomatic moves.
