Top Expert Reveals 3 Warning Signs of a Deeper Silver Plunge

Silver’s recent decline has raised concerns among traders about its potential for further drops. According to Jeffrey Christian, the managing director at CPM Group, this historic plunge may not be the last. He identifies three key warning signs that investors should monitor closely to gauge silver’s market trajectory.

Top Warning Signs of a Deeper Silver Plunge

1. Declining Trading Activity

Christian emphasizes the importance of monitoring trading activity in the silver market. A decrease in interest from investors could lead to a slowdown in prices. Key indicators to watch include the trading momentum of silver, as well as the associated bonds and ETFs.

• Recent trading activity saw retail investors purchase a record net of $171 million in the iShares Silver Trust ETF, surpassing previous levels.
• VandaTrack Research reported a spike in silver’s turnover momentum, highlighting its popularity among retail investors.

2. Increased Silver Supply

Another factor influencing silver’s potential price decline is the predicted rise in silver supply. Recent reports suggest that the global supply could increase by 2% in 2025. Concurrently, demand may see a slight reduction of 1%.

• Christian notes that several signs indicate an increase in supply from silver mining.
• Backlogs at silver refineries, where many investors are offloading their silver, could also contribute to oversupply.

3. Fluctuating Open Interest

High open interest in silver futures has provided a crucial support for prices. Specifically, March 2026 silver contracts on the COMEX exchange showcase around 500 million ounces of open interest.

• If this open interest declines, it may lead to reduced upward pressure on silver prices.
• Christian suggests that despite the recent sell-off, silver prices may remain elevated until near the delivery period of these contracts.

As the silver market grapples with these indicators, traders remain cautious. Marko Kolanovic, a former quant chief at JPMorgan, has voiced concerns about a potential 50% drop in silver prices due to high speculation levels. Similarly, Jose Torres from Interactive Brokers warns that excessive speculation can lead to significant price reversals.

In conclusion, investors should remain vigilant about these warning signs as they navigate the evolving landscape of silver pricing. Understanding these factors may help in making informed decisions in the ever-changing commodity market.