Silver Prices Plummet in Year-End Trading
New York, December 31, 2025, 5:30 PM ET — After Hours
- Spot silver dropped nearly 7% to around $71 an ounce, marking a dramatic end-of-year fluctuation.
- iShares Silver Trust (SLV) saw a decrease of about 6.6%, and U.S.-listed silver mining stocks also faced declines.
- The CME Group has increased margin requirements for metal futures, meaning traders need to post more collateral to maintain their positions.
On Wednesday, physical silver prices plummeted, and major U.S. ETFs linked to silver followed suit as traders took profits ahead of the new year while preparing for increased collateral demands in futures markets.
Timing really matters here. Silver had been a highlight in trading throughout 2025, with leverage driving the gains as liquidity tightened around the holidays and portfolio managers adjusted their holdings. This often shifts a standard sell-off into something more significant.
The recent downturn raises questions about how much of the year’s increase was supported by strong fundamentals versus momentum. Silver tends to be more volatile than gold, especially during price reversals, thanks to its dual role as a safe haven and an industrial metal.
Physical silver prices fell by 6.9% to $71.01 per ounce, trading between $70.06 and $76.44 during the day, according to Investing.com.
In after-hours trading in the U.S., iShares Silver Trust dropped 6.6% to $64.42. Mining companies such as Hecla Mining, Pan American Silver, and First Majestic Silver each saw declines between 1.5% and 1.7%.
The CME Group announced new “performance bond” requirements for metal products, which will take effect after the close on December 31. These performance bonds serve as margin funds that traders must provide to hold futures positions.
This is the second time this week that margin requirements for precious metals futures have been raised due to significant price movements, with these changes taking effect after Wednesday’s trading, according to Bloomberg.
This comes on the heels of a Tuesday rebound, when spot silver increased by 5.4% to $76.20, though the decline mainly results from year-end profit booking.
Despite the recent volatility, silver has had a remarkable year overall. Reports indicate that silver prices surged 161% in 2025, surpassing $80 an ounce for the first time, driven by supply constraints, inventory shortages, and the U.S. critical minerals designation.
“Demand for metals remains robust on both industrial and retail fronts,” noted Tim Waterer, chief market analyst at KCM Trade.
Analysts are now considering whether the rise in margins will diminish speculative buying or merely reset positions ahead of future moves. Waterer pointed out that the “key fundamentals” are still in place as investors gear up for an anticipated U.S. interest rate cut in 2026.
The U.S. stock markets will be closed Thursday for New Year’s Day, with trading set to resume on January 2. Investors are keen to see if silver can maintain levels near $70 as trading activity picks back up.
Looking ahead, a significant event for interest rate expectations is the upcoming U.S. employment report. The Bureau of Labor Statistics will release the December 2025 employment report on Friday, January 9, at 8:30 a.m. ET. The Fed’s next policy meeting is slated for January 27-28.
