Recently, there have been significant price swings in precious metals, particularly silver and gold. A prolonged rally was followed by a historic crash, causing panic among investors.
Throughout 2025, silver rose by nearly 150%, hitting record highs. However, on January 30, 2026, the price dropped by over 26% in a single session—the largest one-day fall in the metal's trading history.
The main driver of this collapse was the appointment of Kevin Warsh as the new chair of the US Federal Reserve, known for his hawkish monetary stance. The announcement led to expectations that the era of low interest rates would end soon, and possibly even rates would rise, strengthening the US dollar and making precious metals less attractive to investors.
Other contributing factors included the prospect of improved US-China relations and increased exchange margin requirements that pressured traders. Nevertheless, demand for silver in industry, especially green energy and electronics, remains high, and supply shortages persist.
Gold also suffered a drop of more than 10%, but the market's fundamental factors remain unchanged. Experts recommend strategic, diversified investment and avoiding impulsive decisions.
The key lesson for investors is the importance of a thoughtful investment strategy and a long-term approach.
