Silver prices crash 43% in two months after record $90 high

Silver prices have experienced extreme volatility in early 2026, plummeting 43% in under two months after a record surge. The metal had climbed 161% year-over-year to $90 per ounce by March 10, driven by booming industrial demand. But a combination of geopolitical shocks, rising energy costs, and monetary policy shifts triggered a sharp reversal to $69.50 by late April.

The collapse followed three major demand shocks hitting at once. First, energy price spikes and fears of central bank rate hikes slowed factory output, cutting industrial silver consumption. Over 60% of silver demand comes from electronics, solar panels, and electric vehicle components—sectors highly sensitive to production costs.

Second, Iran's attack on Qatar's Ras Laffan helium complex disrupted a critical supply chain. The facility provided 30-33% of global helium before the strike, with SK Hynix alone sourcing nearly 65% of its helium there. Helium shortages now threaten semiconductor production, reducing demand for silver used in chip packaging. Finally, while gold held steady due to central bank purchases—including 16 straight months of buying by China's PBOC—silver lacked the same safe-haven support. Markets now price a 50% chance of a US rate hike by October, with the ECB and Bank of England signalling multiple increases for 2026. Higher borrowing costs further weigh on industrial activity and silver's outlook. The metal's steep decline contrasts with its earlier rally, which saw prices jump 137.74% annually to $79.96 by March 16. That surge reflected robust demand from electric vehicle batteries and renewable energy infrastructure—sectors now facing headwinds from tighter monetary policy and supply chain disruptions.

Silver's dramatic fall highlights its vulnerability to industrial slowdowns and policy shifts. With helium shortages crippling chip production and rate hikes looming, demand for the metal faces continued pressure. The reversal marks a sharp turn from 2026's early gains, when surging EV and solar sector needs drove prices to multi-year highs.