Silver Volatility: Spike to $94 Then Sharp Drop, Now Below $70 with COMEX Squeeze Setup
Key Questions
What triggered the sharp drop in silver prices below $70?
A strong US jobs report led to the decline after silver spiked to $94 and fell 34% from highs. Analysts describe the move as a liquidity event rather than a trend reversal.
What is the COMEX squeeze setup in silver?
Delivery data shows a 16.3% coverage ratio with 342M oz paper versus 84.8M oz registered, setting up potential physical pressure ahead of the June 24th first notice day. Experts like David Morgan and Alasdair Macleod highlight this imbalance.
Are analysts viewing the silver sell-off as a buying opportunity?
Many see it as tied to debt and geopolitical liquidity issues, not a fundamental reversal, with silver still up 113% over the past year. The setup suggests potential for volatility around key dates.
How do junior silver miners perform during price drops?
They often move with twice the leverage of the metal itself, amplifying both gains and losses. This dynamic is relevant amid the recent sell-off and COMEX developments.
What external factors are weighing on silver prices currently?
Oil prices and Fed rate hike fears are cited as short-term pressures in forecasts. Despite this, the physical market tightness via COMEX remains a key longer-term consideration.
Silver hit $94 before dropping 34% from highs, and has now broken below $70 on a jobs report. COMEX delivery data shows 16.3% coverage ratio, 342M oz paper vs 84.8M oz registered — a massive physical squeeze setup ahead of June 24th first notice day. Analysts (David Morgan, Alasdair Macleod) view the sell-off as a liquidity event tied to debt and geopolitical risks, not a trend reversal. Silver's 1-year gain remains 113%.