Breaking bearish news hits the market — silver plunges. Is the historic bull run coming to an end?

Value_investing
01-15

Just now, silver briefly plunged over 6%, retreating from its historic high of $93.61 to $87.45.

As a result, silver ETFs were hit hard across the board. $ProShares Ultra Silver(AGQ)$ plunged 8.2% in overnight trading, $iShares Silver Trust(SLV)$ was down more than 6% at one point, while $Abrdn Silver ETF Trust(SIVR)$ and $iShares Silver Trust(SLV)$ followed suit. The lone standout was $Proshares Ultrashort Silver(ZSL)$ , which surged nearly 9% amid the selloff. 

In a statement released on Wednesday, US President Donald Trump announced that he would temporarily suspend the imposition of tariffs on critical minerals. Instead, he would pursue agreements through negotiations with foreign nations to ensure an adequate supply of critical minerals for the United States and to reduce supply chain vulnerabilities as swiftly as possible.

Trump also floated the idea of setting minimum import prices for certain categories of critical minerals, rather than relying solely on traditional percentage-based tariffs, as part of an effort to build supply chains for these materials together with U.S. allies.

The document further noted that “it may be appropriate to impose import restrictions, such as tariffs, if satisfactory agreements are not reached in a timely manner.”

Back in April 2025, the U.S. Department of Commerce launched an investigation into critical minerals under Section 232 of the Trade Expansion Act, arguing that imports of processed critical minerals and their derivatives pose a threat to U.S. national security, given their importance to a wide range of defense-related industries.

On November 6, 2025, the U.S. Geological Survey (USGS) under the Department of the Interior released an updated list of critical minerals, adding copper, silver, and metallurgical coal for the first time. This move is seen as increasing the likelihood that these materials may be included in future tariff policies.

As a result, American importers have been frantically stockpiling copper and silver, driving London copper futures past the US$13,000 mark to reach unprecedented levels! Silver has also witnessed its most frenzied bull run since 1979, briefly approaching the US$100 threshold!

Now that the United States has temporarily suspended tariffs on critical minerals, will the stockpiles accumulated by American importers flood the market? Has this epic bull run in silver reached its peak?

 

Toyota Increases Offer for Toyota Industries Amid Silver Price Drop
Toyota Motor announced a 4% gain in its US-listed shares after agreeing to raise its offer for Toyota Industries to 18,800 yen per share. Concurrently, spot silver prices fell below $90, dropping more than 3% to $89.78 per ounce, impacting silver stocks and ETFs negatively.
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