Silver has plunged below the psychologically critical $60 level for the first time since December 2025, triggering fresh warnings that the correction in precious metals is far from over. The metal, which hit an all-time high above $120 earlier this year after starting 2025 near $30, now trades around $57, leaving analysts sharply divided on whether this is a healthy retracement or the start of a much larger deleveraging event.
Technical analysis points to further downside. Silver recently broke through a support zone between the $61.70 level – which had previously capped waves (2) and A – and $65.00, the former strong floor from February that arrested wave A. This breach has accelerated the active short-term impulse wave C of intermediate ABC corrective wave (2). With risk-off sentiment dominating, the next target is seen at $55.00, the projected completion point of wave C.
Market commentator WhaleTwits argues the decline is part of a broader, cross-asset deleveraging cycle. He noted that silver has lost roughly 21% in a month, gold has erased its 2026 gains, and platinum and palladium are also under heavy pressure. “This is not normal,” he said, pointing to forced selling by large funds raising cash as technology stocks fall. He believes January’s violent one-day crash failed to purge excess leverage, leaving room for another wave of forced sales.
Contrasting that view, Mining Stocks Today highlights that even after the drop, silver remains almost 97% above its $30 starting point in 2025. They stress that the global silver market is heading for its sixth consecutive annual supply deficit of about 46.3 million ounces – larger than during much of the rally – as mine production contracts faster than industrial demand slows. This, they argue, means the fundamental shortage supporting silver remains intact.
Analyst Advait Arora sees the correction as normal after an 18-month rally from $30 to over $100. He describes the short-term outlook as neutral while the chart continues to print lower highs and lower lows, and emphasizes that the $50–$55 support zone must hold to keep the broader bull market alive. A decisive break below that region could lead to a much deeper and longer decline. Beyond the current turmoil, Arora remains optimistic over a 2–3 year horizon, citing central bank diversification, solar panel demand, electrification, constrained mine supply, and monetary uncertainty.
Silver’s next major support sits near $53. Failure to defend that level would expose a move toward $47, and a break there could target $41. The coming weeks will be critical in determining whether the bull trend survives or a prolonged bearish phase begins.
