Domestic futures main contracts closed mostly lower on February 3, 2026, with Shanghai silver plummeting more than 16%, Shanghai tin dropping over 6%, and SC crude oil declining over 4%. Fuel oil fell more than 3%, while low-sulfur fuel oil, caustic soda, and double-coated paper each dropped over 2%. Ethylene glycol, methanol, stainless steel, and asphalt slid nearly 2%.
On the gainers' side, palladium surged over 8%, polysilicon rose more than 6%, and European container freight futures climbed over 5%. Lithium carbonate advanced over 4%, platinum gained over 3%, while Shanghai copper and international copper both increased over 2%.
Traders attributed silver's rapid and severe decline to the abrupt halt of recent speculative frenzy. According to Vanda Research data, retail investors poured a record $1 billion into silver ETFs in January, placing them at the epicenter of the crash. Some users reported "losing astronomical sums" when silver plunged a record 27% in a single day.
StoneX analyst Rhona O’Connell noted, "Silver has always been a 'death trap.' The parabolic rise in recent weeks was essentially an accident waiting to happen." Calculations show that ETF values tracking gold and silver have evaporated approximately $150 billion since markets peaked last week.
Despite the staggering losses, current gold and silver prices have only retreated to mid-January levels, leaving long-term investors with substantial unrealized gains. Many investors view the sharp decline as a correction within a deeper upward trend driven by diversification needs.
Some bulls firmly believe this is merely a "knee-jerk reaction" in a bull market, even interpreting it as a long-term buying signal.
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