Historic 30% Plunge in Silver Prices Amid Dollar Strength
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Should l Buy GOLD?
Source: Benzinga
- Silver Price Crash: Silver prices plummeted over 30% on Friday, marking a historic low, primarily driven by a strengthening US dollar and investor reactions to Trump's Federal Reserve nomination, reflecting market anxiety about the future.
- Pessimistic Market Outlook: CPM Group analyst Jeffrey Christian anticipates that silver prices may continue to decline, warning that further drops could trigger a mass exit from the market, with worst-case scenarios predicting prices could fall to $68 an ounce, indicating an additional 17% decrease.
- Shifts in Investor Sentiment: CPM Group is closely monitoring several indicators, including diminishing investor interest in silver, rising inventories, and changes in trading momentum in silver, bonds, and related ETFs, which may signal further declines in the silver market.
- Future Projections: Despite the recent crash, Christian believes silver prices could remain high or even rise through 2026, but he cautions investors to prepare for potential further declines, as the market behavior is not surprising.
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Analyst Views on GOLD
Wall Street analysts forecast GOLD stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GOLD is 44.33 USD with a low forecast of 30.00 USD and a high forecast of 63.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 50.350
Low
30.00
Averages
44.33
High
63.00
Current: 50.350
Low
30.00
Averages
44.33
High
63.00
About GOLD
A-Mark Precious Metals, Inc. provides a fully integrated precious metals platform. It offers an array of gold, silver, platinum, palladium, and copper bullion, numismatic coins, and related products to wholesale and retail customers via a portfolio of channels. Its Wholesale Sales & Ancillary Services segment distributes and purchases precious metal products from sovereign and private mints. Its Direct-to-Consumer segment operates as an omni-channel retailer of precious metals, providing access to a multitude of products through its subsidiaries, JM Bullion, Inc. (JMB), Goldline, Inc., AMS Holding, LLC (AMS) and Silver Gold Bull, Inc. JMB owns and operates numerous websites targeting specific niches within the precious metals retail market, including JMBullion.com, ProvidentMetals.com, Silver.com, CyberMetals.com, and others. AMS operates GOVMINT, which markets vintage and modern coins. It operates its Secured Lending segment through its subsidiary, Collateral Finance Corporation, LLC.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Silver Price Crash: Silver prices plummeted over 30% on Friday, marking a historic low, primarily driven by a strengthening US dollar and investor reactions to Trump's Federal Reserve nomination, reflecting market anxiety about the future.
- Pessimistic Market Outlook: CPM Group analyst Jeffrey Christian anticipates that silver prices may continue to decline, warning that further drops could trigger a mass exit from the market, with worst-case scenarios predicting prices could fall to $68 an ounce, indicating an additional 17% decrease.
- Shifts in Investor Sentiment: CPM Group is closely monitoring several indicators, including diminishing investor interest in silver, rising inventories, and changes in trading momentum in silver, bonds, and related ETFs, which may signal further declines in the silver market.
- Future Projections: Despite the recent crash, Christian believes silver prices could remain high or even rise through 2026, but he cautions investors to prepare for potential further declines, as the market behavior is not surprising.
See More
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- Bitcoin's Potential: Changpeng Zhao pointed out that despite gold and silver's thousands of years of history, their prices can still fluctuate dramatically, indicating that traditional assets are not immune to extreme shocks.
- Early Stage of Cryptocurrencies: Zhao emphasized that Bitcoin, being only 17 years old, is still in its infancy, and other crypto assets are even younger, suggesting significant growth potential remains in the market.
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- Investment Agreement: Gold.com announced a definitive agreement with Tether, under which Tether will invest $150 million through common stock purchases, reflecting strong confidence in Gold.com's future growth potential.
- Share Details: Tether will acquire approximately 3.37 million shares at $44.50 each, with an initial investment of about $125 million and an additional $25 million pending regulatory approval, indicating a cautious optimism about market prospects from both parties.
- Board Nomination Rights: Tether will have the right to nominate one director, which not only enhances its influence within Gold.com but may also provide strategic guidance to foster business development.
- Planned Use of Funds: Gold.com intends to allocate $20 million of the proceeds to invest in Tether's gold-backed stablecoin XAU₮, signaling the company's intent to position itself in the digital asset space and enhance its competitive edge.
See More
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- Quarterly Dividend Announcement: Gold.com has declared a quarterly dividend of $0.20 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability, which is likely to attract more investor interest.
- Dividend Yield: The forward yield of 1.59% reflects the company's competitiveness in the current market environment, potentially boosting shareholder confidence and stabilizing the stock price.
- Shareholder Record Date: The dividend will be payable on March 4, with a record date of February 20 and an ex-dividend date also on February 20, ensuring that eligible shareholders receive their dividends promptly, thereby enhancing their willingness to hold shares.
- Investor Attention: Gold.com is also set to receive a $150 million investment from Tether, which could further enhance the company's market position and future growth potential.
See More
Gold.com Q2 Earnings Highlights
- Earnings Performance: Gold.com reported a Q2 GAAP EPS of $0.46, missing expectations by $0.01, indicating pressure on profitability that could affect investor confidence.
- Revenue Surge: The company achieved revenue of $6.48 billion, a 136.5% year-over-year increase, reflecting strong business expansion and market demand, despite the earnings miss.
- Investment Injection: Gold.com is set to receive a $150 million investment from Tether, which will enhance the company's financial stability and support future growth strategies.
- Market Dynamics: Amid a significant liquidation event, gold, silver, and stocks faced selling pressure, highlighting volatility in market sentiment that may impact Gold.com's stock price in the short term.
See More
Trump's Federal Reserve Nominee is Causing Market Jitters: Here's How Stocks, Bitcoin, and Gold Are Responding to Warsh.
Role of the Federal Reserve: Former Fed Chair William McChesney Martin emphasized that the central bank's duty is to curb excesses in the economy, akin to removing a punchbowl when the party is in full swing.
Impact of Kevin Warsh's Nomination: Kevin Warsh's nomination by President Donald Trump to lead the Fed has seemingly deflated a bubble in precious metals, indicating his influence even before taking office.
See More
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- Silver Price Crash: Silver prices plummeted over 30% on Friday, marking a historic low, primarily driven by a strengthening US dollar and investor reactions to Trump's Federal Reserve nomination, reflecting market anxiety about the future.
- Pessimistic Market Outlook: CPM Group analyst Jeffrey Christian anticipates that silver prices may continue to decline, warning that further drops could trigger a mass exit from the market, with worst-case scenarios predicting prices could fall to $68 an ounce, indicating an additional 17% decrease.
- Shifts in Investor Sentiment: CPM Group is closely monitoring several indicators, including diminishing investor interest in silver, rising inventories, and changes in trading momentum in silver, bonds, and related ETFs, which may signal further declines in the silver market.
- Future Projections: Despite the recent crash, Christian believes silver prices could remain high or even rise through 2026, but he cautions investors to prepare for potential further declines, as the market behavior is not surprising.
See More
Changpeng Zhao's Insights on Bitcoin's Future Amidst Precious Metal Price Drop
- Precious Metal Price Drop: On Friday, gold prices fell by approximately 15% and silver by nearly 38%, resulting in a combined market value loss of around $15 trillion, which has sparked extensive discussions within the crypto community.
- Bitcoin's Potential: Changpeng Zhao pointed out that despite gold and silver's thousands of years of history, their prices can still fluctuate dramatically, indicating that traditional assets are not immune to extreme shocks.
- Early Stage of Cryptocurrencies: Zhao emphasized that Bitcoin, being only 17 years old, is still in its infancy, and other crypto assets are even younger, suggesting significant growth potential remains in the market.
- Reevaluation of Investment Strategies: This event may prompt investors to reconsider their investment strategies and explore opportunities within the crypto market, especially in light of the increasing volatility of traditional assets.
See More
