Precious Metals Market in Turmoil as Gold and Silver Prices Swing Violently
The Diamond District faced unprecedented chaos as gold and silver prices collapsed after months of steady gains. By late Wednesday, both metals hit record highs, only to plummet nearly 10% within 30 minutes early Thursday. A brief recovery proved fleeting—Friday brought another sharp decline following President Trump's announcement of Kevin Warsh as Federal Reserve chair. Silver suffered its worst single-day drop in history, tumbling over 25%.
Dealers froze purchases amid extreme volatility and liquidity shortages. "Pandemonium at the refineries," reported Moses The Jeweler, who described melting operations running out of physical cash after overextending on purchases. The SAFE-haven trade unraveled as institutional and retail investors alike panic-sold positions accumulated during prolonged inflation fears and dollar uncertainty.
