Silver slid 26% on Friday, with intraday swings nearing 38%, marking one of the most extreme moves in the metal’s modern trading history. UBS analysts Dominic Schnider and Wayne Gordon warned that such daily price shifts have not been seen in almost half a century. The plunge rattled markets and triggered a sharp sell‑off.

Volatility surged to 115% for one‑month and 78% for three‑month periods, up from 55% and 55% before the rout. Rising margin requirements for silver futures followed, as the metal’s price had stretched 250% year‑on‑year. ETF buying and speculative futures positioning retreated, while China traded at a significant premium and swap rates turned positive.

UBS now sees silver near its USD 85/oz long‑term forecast but cautions that lower prices are needed to attract investors amid 60–120% volatility. The bank advises against building long‑term exposure yet notes that high option volatility could make downside‑risk selling attractive for those with very high risk tolerance. Watch for Fed policy shifts.