Silver Drops to Lowest Level in 2026, Falling 56% From Its Record Peak

Silver closed on Friday at $53.83 per ounce, marking its lowest closing level in 2026 and nearly 56% below its record peak of $121.74, according to a report published by Yahoo Finance citing BeInCrypto.

The report attributed the drop to a wave of forced selling following an increase in futures margin requirements in January, in addition to inflation fears driven by rising oil prices and bets on US interest rate hikes.

Hedge funds and systematic traders sold about $2.2 billion worth of silver futures contracts during the three weeks ending October 13, adding further downward pressure on the price.

The report pointed to support in the $52 to $55 range and identified the Federal Reserve meeting on October 27 and 28 as the next catalyst that could determine the metal's trajectory in the coming period.

What Do These Terms Mean?

Forced Selling: The forced sale of assets to cover losses or meet financial obligations, rather than a voluntary investment decision.

Margin Requirements: The amount a trader must deposit with a broker to ensure they can cover potential losses on futures contracts.

Hedge Funds: Investment funds that pursue multiple strategies and deal in derivative contracts and complex financial instruments.

Systematic Traders: Traders who rely on computer programs and mathematical models to make buy and sell decisions in the markets.