Mon Feb 02 15:10:00 UTC 2026: ### Silver Price Plunges Amid Dollar Surge and Fed Speculation
The Story:
The iShares Silver Trust (SLV) experienced a dramatic sell-off, plummeting 28.5% to US$75.44 on high volume. The catalyst for this drop appears to be reports suggesting Kevin Warsh could potentially lead the Federal Reserve, boosting the US dollar and triggering margin calls on leveraged silver positions. This forced deleveraging amplified the price decline, marking the worst single-day silver fall since 1980. Singapore investors face additional risks including SGD-USD exchange rate fluctuations, wider spreads, and daylight funding complexities.
Key Points:
- SLV stock price fell 28.5% to US$75.44, with an intraday low of US$69.12.
- Volume surged to 506.5 million shares compared to a 77.9 million average.
- The price drop was attributed to reports of Kevin Warsh potentially leading the Fed, strengthening the US dollar and real yields.
- Margin calls and forced deleveraging exacerbated the decline.
- Singapore investors face currency risk and liquidity challenges.
Key Takeaways:
- Silver is highly sensitive to dollar strength and changes in real yields.
- Leverage can magnify losses in volatile markets.
- Global investors, including those in Singapore, need to consider local currency risks and market timing when trading US-listed assets.
- News events, especially those related to central bank policy, can trigger rapid and significant price movements.
- Risk management, including position sizing and stop-loss orders, is critical in managing commodity investments.
First Piper 