Silver prices have fallen over 52% since reaching a historic high in January this year, facing continued pressure recently
This round of adjustment reflects volatility in the commodity market, possibly influenced by macroeconomic data, the dollar's performance, and expectations for industrial demand.
Market Mechanism: Weakness in both industrial and investment demand has led to a rapid price decline, with funds shifting from safe-haven precious metals to other assets. While under short-term pressure, long-term support remains from industrial uses such as solar energy and electronics.
Source: Public information
ABAB AI Insight
As an industrial precious metal, silver previously benefited from demand driven by AI data centers and new energy, reaching a historic high. This over 52% decline resembles patterns seen during historical cycles of macroeconomic tightening or shifts in demand expectations.
In terms of capital flow, investors are taking profits at high levels or shifting to other safe-haven assets, while industrial buyers may take advantage of lower prices to replenish stocks. Resources are shifting towards metals like copper or the stock market, which have stronger fundamentals.
Currently, we are in a phase of adjustment in the commodity cycle. Long-term industrial demand related to AI remains positive, but short-term pressures are exerted by macro data.
Structural Judgment: Essentially, this is a transfer of pricing power driven by capital concentration. Changes in macro expectations have led to funds flowing out of high-priced silver and concentrating on assets with higher growth certainty. The mechanism involves the resonance of industrial cycles and financial attributes, achieving a return of prices from speculative peaks to fundamental equilibrium.
ABAB News · Law of Cognition
After a historical high, an adjustment is inevitable; bubbles rise quickly and fall hard.
Industrial metals depend on demand; safe-haven strategies fail during macro tightening periods.
Long-term support from new energy remains; corrections present a window for allocation.