Why Silver Prices Are Going Crazy Today

Gotrade News - Silver prices today are whipsawing hard, tanking nearly 10 percent before snapping back up. Thin liquidity is fueling these wild moves, leaving the market struggling to find a solid floor.

Spot silver jumped as much as 6.2 percent during Asian trading hours on Friday (Feb 6). This rebound kicked in right after prices nosedived toward the $64 per ounce mark earlier.

Key Takeaways:

• Liquidity crunch is amplifying silver volatility to extreme levels not seen since 1980.

• Chinese investors cashing out before Lunar New Year is driving the massive sell-off.

• JPMorgan sees Bitcoin as a hotter long-term bet than precious metals right now.

Triggers for the Volatility

This price action marks the most insane volatility hit the silver market has seen since 1980. Bloomberg reports that speculative momentum and dead quiet over-the-counter trading are making things worse.

Ole Hansen from Saxo Bank explains that market makers naturally widen spreads when things get shaky. That dynamic leaves liquidity weakest exactly when traders need it the most to keep things stable.

Selling pressure is also ramping up as Chinese investors close positions before the long holiday. Zijie Wu from Jinrui Futures notes that longs are stopping out and shorts are taking profits.

Institutional Outlook

Gold is actually handling this heat much better than silver right now. Some global asset managers are sticking to their bullish guns for the yellow metal long-term.

However, this volatility is making some question if metals are still a safe hedge. Strategists at JPMorgan think Bitcoin looks way more attractive than gold for the long haul.

This extreme volatility in silver actually opens up huge profit potential if you play it right. Instead of fearing the drop, you can capitalize on moves up or down using Options.

The SLV ETF is a solid way to catch these swings in silver prices. You can chase maximum potential profits in any market condition without holding the physical metal.

That’s the market update worth watching today. Follow Gotrade News for timely coverage on US stocks, ETFs, and macro moves that shape market direction. For a structured starter guide, visit the Gotrade Blog to learn the basics and build your plan.

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Reference:

• Bloomberg, Silver Whipsaws Again as Thin Liquidity Fuels Wild Price Swings. Accessed on February 6, 2026

• Featured Image: Unsplash