Market Overview
As of December 31, 2025, silver has experienced a significant downturn, with a reported decline of 5.15% during the trading session. The market is currently facing volatility, and there are concerns about the sustainability of silver prices at their current levels.
Technical Analysis
The author, Christopher Lewis, expresses skepticism about the current price levels of silver, predicting that the market may face substantial pullbacks. He suggests that while silver is unlikely to drop back to the $20 or $18 levels seen in previous years, the current price action is unsustainable. The market is showing signs of instability, and there is a possibility of sideways movement as traders attempt to stabilize the situation.
Market Sentiment
Lewis notes that the trading environment is becoming increasingly nerve-wracking, with traders looking to exit positions as the year ends. He highlights that the market was down approximately 8.5% before the U.S. trading pits opened, indicating a desire among traders to secure profits and reduce exposure to risk heading into the new year.
Investment Strategy
In light of the current volatility, Lewis advises against shorting the silver market but acknowledges the potential for further downside. He recommends that traders consider taking profits and adjusting their positions to reflect the heightened volatility. The market dynamics have shifted significantly since July, and traders should be cautious in their approach.
Conclusion
Overall, the outlook for silver remains uncertain, with the potential for significant price swings. Traders are encouraged to remain vigilant and adapt their strategies to the evolving market conditions as 2026 approaches.