Silver’s Stunning Reversal After Record High
A dramatic turn in the precious metals market saw silver futures experience a historic one-day collapse on Monday, Feb. 17, 2025, just after scaling an unprecedented peak. After briefly trading above $80 per ounce for the first time ever in overnight activity, silver futures plunged 8.7% to settle at $70.46. This marked the worst single-day percentage drop for the contract since February 2021.
The intraday volatility was even more extreme, with the price swinging from its record high to the session low—a peak-to-trough decline of approximately 15%. This high-to-low range was the largest since August 2020, when silver fell 16.85%.
Historic Intraday Plunge
“This is a historic move,” commented Jeff Kilburg, CEO and Chief Investment Officer of KKM Financial. “We haven’t seen a move like this in a long time.” Kilburg attributed the sharp sell-off to a confluence of technical and calendar-driven factors, primarily heavy profit-taking from recent gains and significant tax-loss harvesting activity as investors positioned for the new tax year. These forces temporarily dented silver’s spectacular ascent.
Despite the severe daily setback, silver’s year-to-date performance remains phenomenal, with a gain exceeding 140% from its starting point just above $20 per ounce in January. This rally has even outpaced gold, which is up more than 60% in 2025 and recently saw its own record above $4,550 before dropping 4.6% on the same day.
Why Silver Soared in 2025
Silver’s monumental gains this year stem from a powerful dual narrative. Like gold, it serves as a traditional safe-haven asset, attracting investment amidst heightened geopolitical tensions and concerns over swelling U.S. fiscal deficits. Both metals are also viewed as stores of value, providing a hedge against a potentially weakening U.S. dollar driven by inflation or economic uncertainty; a softer greenback also makes dollar-priced commodities cheaper for foreign buyers, boosting global demand.
Beyond its monetary role, silver has a critical industrial foundation. Strong, sustained demand from sectors such as solar panel production, data center infrastructure, and the electric vehicle boom has provided a consistent underlying support for prices, differentiating it from non-yielding gold.
Expert Outlook: Bullish Despite Pullback
Kilburg interprets the violent reversal not as the end of the rally, but as a necessary “reset” and “reprieve.” He maintains a strongly bullish outlook for both precious metals heading into 2026, citing fundamental supply constraints and robust, multi-sector demand. “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 stated.
His price targets suggest significant further upside. Kilburg forecasts silver could reach $90 or even $100 per ounce, representing potential gains of roughly 27% to 40% from the post-plunge settlement level. He believes the fundamental drivers supporting the multi-month rally remain firmly intact.
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
