Silver is rebounding after its worst trading day in four years. Here’s what is behind the move.
(CBS NEWS) – Sources from CBS say, after yesterday’s sharp selloff rattled the market, silver rebounded Tuesday, marking the latest twist in what has been a standout year for the precious metal, with prices more than doubling since January.
Silver futures jumped to $78.03 per ounce on Tuesday, a 10% gain, after Monday’s 8.7% decline, according to financial data company FactSet.
Gold futures have also soared this year, with the precious metal hitting record highs earlier in December.
Investors have been piling into precious metals this year as a safe haven amid rising geopolitical tensions, as well as a hedge against inflation. That’s helped drive sharp gains in both silver and gold.
“Silver saw a record rally in 2025. The 150% increase is significantly higher than that of gold and other assets in the sector,” noted Alex Kuptsikevich, chief market analyst at FxPro, in an email.
Despite silver’s price gains this year, the metal is still far from its inflation-adjusted price record, which was set in 1980, he noted. “To return to that level, silver would have to cost $200 per ounce today,” he noted.
Monday’s selloff in silver was sparked by a technical change at the Chicago Mercantile Exchange, one of the world’s largest commodities trading venues. The exchange said it would require traders to put up more cash to hold positions in silver, gold and other metals after prices surged this year.
The CME raised margin requirements for the contracts in a notice posted Friday. Such moves are designed to protect the exchange by reducing the risk that traders cannot cover their bets if prices swing sharply.
Exchanges sometimes boost margin requirements when a commodity or other security goes on a significant run. In its notice, the CME said it was raising margin requirements “per the normal review of market volatility.”
Copper prices
Copper futures also clawed back some of Monday’s losses, rising 3.1% on Tuesday.
Even with a 4.7% decline to start the week, copper futures have soared more than 42% this year, on pace for the largest gain in 16 years. Copper is critical to global energy infrastructure, and demand is expected to keep growing as the development of artificial intelligence technology puts more of a strain on data centers and the energy grid.
Mining companies, which tumbled with gold and silver Monday, also bounced back early Tuesday, with Freeport-McMoRan and Newmont both up more than 2%.
