International silver prices have entered bear market territory, falling 22 percent from their recent record high, as sharp volatility rattles global commodity markets. Silver, which surged to historic levels earlier this week, slipped back below $98 per ounce on Friday, raising concerns among investors about liquidity stress and market stability.
According to market data, silver was trading near $98 per ounce at 3:20 PM, after touching a record high of $122 per ounce earlier in the week. The steep decline follows aggressive profit-taking after a powerful rally that saw silver prices jump more than 41 percent since the start of January 2026.
Market analysts believe the pullback reflects heightened uncertainty across global financial markets rather than a collapse in demand.
“Such sharp corrections are common after parabolic rallies, especially when speculative positions unwind rapidly,” one commodities trader noted.
The sudden drop triggered intense debate on social media platform X, where several commentators warned that the move could signal the early stages of a liquidity crunch. Others dismissed the fears, calling the decline a case of short-term market manipulation and excessive leverage being flushed out.
Despite the correction, spot prices remain historically elevated, suggesting that broader investor interest in precious metals driven by inflation concerns, geopolitical risks, and currency uncertainty has not fully faded.
Silver’s rally in early 2026 was fueled by strong industrial demand expectations, speculative buying, and safe-haven flows amid global economic uncertainty. While the latest drop marks a technical bear market, analysts caution that volatility is likely to persist rather than trend in a straight line.