Welcome back to GoldBank Insider, the UK news-led precious metals podcast. Today we are unpacking a sharp move in silver: a big rally, a sudden pullback, and why volatility is now the main story.

What happened

Silver surged to fresh records, briefly trading above $117 an ounce, then dropped hard in the next session, finishing around $105.52, down roughly 8% on the day. The backdrop is still bullish on paper: silver has been up strongly since the start of January and has massively outperformed gold over the last 12 months. But the speed of the rally has brought a familiar problem: silver can move fast both ways.

Why this is happening

Safe-haven demand is still driving flows

Geopolitics and macro uncertainty have kept precious metals in focus, with gold and silver elevated around record territory.

Silver is not just a “mini gold” anymore

A growing share of silver demand is industrial, with estimates around 60% tied to industry rather than purely investment demand. That makes silver more sensitive to the global growth narrative, tech capex cycles, and energy infrastructure spending.

Liquidity is the real volatility engine

Silver markets are thinner than gold. One proxy: London gold trading volumes were reported as several times larger than silver, which helps explain why silver tends to gap and whip around during crowded trades.

Why it matters for the UK

If you are buying in GBP, volatility matters more than the headline price.

Physical silver usually carries bigger spreads than gold, and those spreads can widen when prices move quickly.

Fast moves can trigger poor fills on ETFs or leveraged products, especially around major macro events.

When silver is treated as a high-beta precious metal, it can drop even while the longer-term story stays intact.

What to watch next

The next “volatility day”: if silver is making 2-way moves of 5% to 10% in a session, that often signals a market that is crowded and fragile.

Gold versus silver behaviour: if gold holds steady while silver swings, that is a clue the move is positioning and liquidity, not a fundamental break.

Macro catalysts: central bank signals and risk sentiment can amplify these moves quickly in metals.

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