Silver’s Dramatic Rise and Fall: Record High to Sharp Selloff
Silver experienced a rollercoaster week in the commodity markets. It reached an unprecedented all-time record high of $121.62 per ounce in January 2026, propelled by record industrial demand, a sixth consecutive annual supply deficit, and a surge in safe-haven buying. However, the markets experienced a swift reversal this week following the Federal Reserve’s hawkish dot plot on June 17, 2026, which sent precious metals into a tailspin.
By the week’s end, silver had posted its most significant weekly drop in months, plummeting below $65 per ounce — a roughly 42% decline from its January peak. This sharp fall was triggered by the Fed’s indication of potential rate hikes in 2026, which boosted the US dollar to its highest level since May 2025. Higher borrowing costs tend to diminish the appeal of non-yielding assets like silver by increasing their opportunity cost. Despite a brief recovery on news of a US-Iran peace agreement earlier in the week, the central bank’s hawkish stance fully erased these gains.
Despite this volatility, analysts maintain that silver’s long-term structural case remains intact. Industrial applications — including solar panels, EVs, electronics, and AI hardware — now account for over half of global demand. According to the Silver Institute, physical investment in silver is projected to rise 20% in 2026 to a three-year high. This increase is expected despite short-term price volatility, as macroeconomic uncertainty continues to keep investor interest high.
Source: GoldSilver.com — Silver Price Outlook June 2026