PRECIOUS METALS | Silver Prices Plunge Below $80 Amid Market Volatility

Silver experienced another week of extreme volatility, with prices significantly dropping below $80 per ounce, marking another round of intense fluctuations in one of the year's most turbulent markets. According to Jin10, during the week ending Wednesday, silver prices initially surged by 11.3%, driven by investor enthusiasm for AI-related stocks and industrial metals used in data center power systems, wiring, and cooling. On Monday, speculation regarding fuel supplies in major mining country Peru also pushed prices higher. Subsequently, further signs of escalating inflation due to the Iran conflict led investors to demand higher yields from government bonds, causing silver prices to retreat. Higher borrowing costs negatively impact silver, which typically does not pay interest. James, Chief Precious Metals Analyst at HSBC Holdings, stated, "We still believe silver is fundamentally overvalued, and demand from the jewelry and industrial sectors will continue to weaken in the face of high prices."