Silver surges 7% back to $90! Strong rebound after the plunge, can it push even higher in 2026?

Silver experienced a historic plunge and has rebounded strongly within just two days. Today, the price broke through $90 per ounce, restoring market confidence.
(Background recap: Big short Michael Burry warns: Bitcoin crash could trigger a “collateral death spiral” that drags down gold and silver markets)
(Additional context: Epic crash! Silver plummeted 35% to break below $75, gold dropped 12% and fell below $4700, analysts say the precious metals feast is over)

Recently, the silver market has been highly volatile. After a historic sharp decline, prices rebounded strongly within two days, and today broke the $90 per ounce mark, attracting investor attention. Market analysis suggests that the fundamental supply and demand gap and safe-haven demand remain key factors supporting silver, but short-term volatility requires cautious response.

Rapid rebound after sharp correction

Last weekend, silver experienced a single-day massacre with a drop of over 35%, with prices plunging from a high of about $120 to below $75, triggering panic selling in the market. Factors causing this sharp decline include a short-term strengthening of the US dollar, news affecting Federal Reserve chair prospects influencing monetary policy expectations, and some large institutions executing large-scale liquidations in extreme market conditions, amplifying chain selling pressure.

However, within just two days, silver demonstrated a strong rebound, with spot prices currently at $91.68 per ounce, up over 7% intraday, and market sentiment warming.

Multiple factors driving the rebound

Market analysis indicates that this strong rebound is mainly driven by the following factors:

• Supply and demand fundamentals: The global silver market has been in a supply deficit for consecutive years, with a shortfall reaching thousands of tons by 2025, and the gap is expected to widen in 2026. Steady industrial demand, especially in solar photovoltaic, electric vehicles, electronics, and AI applications, provides solid fundamental support.
• Buying on dips: The previous plunge triggered bottom-fishing demand, especially from speculative funds in China, quickly replenishing positions and driving short-term price recovery.
• Safe-haven demand heats up: Geopolitical risks and inflation concerns persist, making precious metals attractive safe-haven assets. Market sentiment shifted rapidly from panic to optimism, pushing prices higher.

However, investors should remain cautious of changes in the US dollar index, Federal Reserve policy directions, and physical delivery pressures to avoid chasing highs.