One of the Biggest Single-Day Drops in Years
Silver just saw one of the most extreme single day moves in recent memory, dropping more than 34 percent in Canadian dollars. For most people, a move like this feels alarming. For me, it fits perfectly into the bigger picture I’ve been outlining for months.
Context Behind the Pullback
Importantly, even with a move this dramatic, the current drop only takes silver back to where it was trading 2 to 3 weeks ago. For gold, the pullback barely erases one week of gains. That alone shows how elevated prices have been and why a reset like this was inevitable.
Entering a New Volatility Regime
I also think that because prices have been going crazy, we are now entering a new level of volatility. When markets reach new territory, they need room to move both up and down. In my view, the swings going forward will be much larger because the market needs more space to digest these higher price levels. It’s similar to when a small startup company suddenly breaks out—the daily moves become much bigger. Metals are entering that phase now in my opinion.
Rates, Oil, and the Broader Setup
In my recent article Interest Rates, Gold, and the Calm Before the Next Storm, I explained why I believed interest rates were likely to start heading lower. One of the main reasons was my view that oil was nearing exhaustion. Over the past month, oil has been up about 12 percent, but I believe it is now at risk of rolling over. Not because the commodity cycle is ending, but because the economy is slowing and demand is weakening.
If oil turns here, I believe rates will follow soon after. And this ties directly into silver.
Lower rates are historically one of the strongest catalysts for precious metals. When rates fall, the opportunity cost of holding metals disappears, liquidity expands, and capital rotates toward hard assets. If we are entering a period where rates begin to decline, this could be another strong catalyst for both gold and silver.
A Shakeout Was Overdue
Silver has been on an incredible run over the past year. Nothing goes straight up forever. When a market rises this quickly without meaningful corrections, a reset becomes unavoidable. Today’s move flushed out weak hands, over leveraged traders, and short term speculators. This is exactly how long term opportunities form.
I have been saying for a long time that we are entering a 10 to 20 year precious metals cycle. Commodity supercycles usually begin after long periods where financial assets dominate. We have had more than a decade of that. The cycle is shifting.
As prices climb into new territory, the volatility naturally increases. Bigger upside moves create room for bigger downside moves. This is healthy. A market cannot only go straight up—it needs to breathe. Today’s correction is part of that process.
The Bigger Commodity Picture
We are entering a period of massive global demand for raw materials. Robotics, automation, AI chips, battery factories, renewable energy systems. All of it requires enormous amounts of metals and energy.
This is not a hype cycle. It is structural.
The world being built right now cannot function without commodities.
Manipulation or Market Mechanics
Was today’s move manipulation? Possibly. Silver has a long history of sharp, sudden swings. But whether this drop was engineered or simply caused by thin liquidity and forced liquidations is not the key point.
The long term cycle has not changed.
What I Am Doing Personally
I am watching closely. If I believe silver has bottomed, I expect to be buying silver and buying some gold, possibly over the weekend. I do not chase waterfalls. I wait, I watch the behavior, and then I act.
In my view, this is a healthy pullback inside a much larger trend. For people who understand the cycle we are in, moves like this often become opportunities.
This is not financial advice. It is simply how I think about markets, cycles, and timing.
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