Silver Falls from Peak, Tight Supply Still Supports
Silver prices weakened on Wednesday (January 21st) and are now trading around $92.4 per ounce after previously failing to hold the record near $96.
The main reason: a temporary easing of geopolitical tensions. After Trump confirmed he would not use military force regarding Greenland, the market calmed down somewhat. Risk assets and bonds stabilized, reducing the need to go all-in on defensive assets like precious metals.
However, yesterday's rally was strong due to a combination of "noisy" factors: the threat of tariffs on Greenland and the volatility in Japanese bonds that rocked global debt markets. As a result, the dollar weakened for a while, making precious metals increasingly attractive as a safe haven.
Despite the decline, silver hasn't lost its main foundation: tight physical supply. Various industry reports highlight that the silver market has experienced several years of deficit (demand exceeding supply), making silver prices sensitive to new shocks—whether from currencies, sovereign debt, or trade policy.
So the story is simple: silver is cooling down after its sprint to record highs. But as long as tariff issues, bond volatility, and the "Sell America" narrative can still emerge at any time, a correction like this could quickly turn into a rebound if market tensions return.
Source: Newsmaker.id
