Foreign Media: On February 1, 2026, the price of silver fell by $40 within less than twenty hours, recording a single-day maximum drop of 26%. The trigger for this crash was the announcement by President Trump to nominate Kevin Walsh as the Federal Reserve Chair, which led to a strong dollar.
Previously, the metal market experienced a buying surge driven by Chinese speculators, especially silver and gold, with prices continuing to rise. However, this increase was backed by the frenzied trading of Chinese speculators, which quickly caused significant market volatility.
The rise in metal prices was initially driven by Chinese speculators who invested funds into metals such as gold, silver, and copper, and even some ETFs saw record trading volumes. As the market became excessively inflated, prices eventually experienced a severe decline. Silver prices plummeted by 26%, setting a historical record, while gold prices dropped by 9% in one day.
This crash also reflects the risks of speculative activities, especially when the market becomes overly dependent on a particular group of investors. With Chinese investors selling after the crash, the global metal market faced significant pressure. The future trend still depends on demand from the Chinese market, and investors will watch the reaction in the Shanghai market after it opens.
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Original: toutiao.com/article/1855932393670727/
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