Should You Sell Silver Now?

Silver has been on a wild ride. After racing to a record high of $84 per ounce, prices suddenly dropped to around $73 in a sharp correction.

The speed of the move caught many investors off guard, especially those who expected the rally to continue. At the same time, Bitcoin also struggled, with veteran economist Peter Schiff renewing his criticism of crypto markets.

The big question now is whether silver’s drop signals a deeper shift or simply a pause after an overheated rally. This silver analysis looks at what caused the decline and whether selling silver now makes sense.

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Key Takeaways

1. Silver fell 13% after hitting record highs, driven by profit taking and higher margin requirements.

2. Despite the drop, silver is still up around 166% year to date.

3. Long term demand factors remain strong, even as short term volatility increases.

Why Silver Fell So Fast After Reaching Record Highs

Silver’s drop did not come out of nowhere. The rally had been intense, pulling prices higher at a pace rarely seen in precious metals. When gains move that fast, corrections often follow.

Margin Hikes Changed the Mood

One key factor was action by the Chicago Mercantile Exchange. The CME raised margin requirements for March 2026 silver futures to about $25,000, up from $20,000 earlier in the month. This was the second increase in just 2 weeks.

Higher margins force traders using leverage to put up more capital. Many choose to close positions instead, which adds selling pressure and pushes prices down faster.

Profit Taking Kicked In

After reaching all time highs, many investors locked in gains. With silver up roughly 166% year to date, selling became tempting. Once prices started to slip, more traders followed, turning a pullback into a sharp drop.

Read Also: Is the Commodity Trend Over? Analyzing Gold and Silver’s Price

How Peter Schiff Views Silver and Bitcoin Differently

Peter Schiff used the market moves to reinforce his long held views. As Bitcoin briefly moved above $90,000, he urged investors to sell, calling it another chance to exit what he sees as a risky trade.

Schiff’s View on Bitcoin Versus Metals

Schiff argues that Bitcoin and gold represent opposite trades. In his view, gold and silver benefit from real value and scarcity, while Bitcoin depends on speculation. He has repeatedly pointed out what he sees as a negative correlation between Bitcoin and gold.

Bitcoin has struggled recently, falling from highs near $108,000 in mid November. It broke below the $90,000 level and remains under pressure, with technical indicators pointing to resistance around $95,121.

Silver Still Holds a Different Position

Even with the recent crash, silver stands apart from crypto in Schiff’s framework. Its industrial use, physical demand, and role as a store of value keep it relevant, especially during periods of economic uncertainty.

Read Also: Bitcoin Performance vs Precious Metals: Gold’s All-Time High and Silver’s Move

Does Strong Demand Change the Silver Outlook?

Despite the selloff, several signals suggest silver demand remains strong. These factors help explain why some investors are not rushing to sell.

Global Interest Remains High

Silver’s market capitalization briefly surpassed Nvidia, making it the second most valuable asset in the world behind gold. This reflects how much capital flowed into the metal during the rally.

Chinese investment demand has also been notable. Spot silver premiums in Shanghai rose above $8 per ounce compared to London prices, the widest gap on record. This points to strong regional demand even as prices correct globally.

Correction Does Not Mean Collapse

Corrections are common after strong rallies. While silver’s drop was sharp, it does not erase the broader trend that pushed prices higher in the first place. For many investors, the move looks more like a reset than a breakdown.

Read Also: Silver Price Breaks $79 Resistance: Can It Hit $82, $90 or $100 in 2026?

Conclusion

So, should you sell silver now? The answer depends on your time frame and risk tolerance. Short term traders may remain cautious as volatility stays high and markets adjust to tighter conditions.

However, the broader picture shows silver still holding strong gains and supported by global demand.

Margin hikes and profit taking explain the drop, but they do not necessarily signal the end of silver’s appeal.

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FAQ

Why did silver prices crash after hitting $84?

Silver fell due to profit taking and higher CME margin requirements that forced leveraged traders to sell.

Is silver still a good investment after the drop?

Silver remains up about 166% year to date, and long term demand factors are still present.

Should you sell silver now?

That depends on your goals. Short term traders may reduce exposure, while long term investors may hold through volatility.

How does silver compare to Bitcoin right now?

Silver has physical demand and industrial use, while Bitcoin is facing technical pressure below key resistance levels.

Can silver recover from this correction?

Recoveries are possible, especially if global demand and economic uncertainty continue to support precious metals.

Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.