Silver Crashed? The Ugly Truth About What’s Next

Silver price is getting crushed lower today. It is now down over 6% and it is now fallen to its lowest price since March. Why is it going down and where can it go from here? Let's get into it. Introducing the first ever 5 ounce silver Maple Leaf coin from the Royal Canadian Mint a historic release with an iconic design that is available in a stunning 5 ounce format for the first time ever. Don't miss your chance to own a piece of minting history. Available exclusively at sdbullion.com. Thank you so much for watching. I do sincerely appreciate it. Today is Friday, June 5th and precious metals are getting absolutely hammered today. Let's take a look at silver. It's sitting at $69.28. It's down $4.61 or 6.3%. That is a massive move lower for silver and gold is also moving down. It is now sitting at $4,343. It's down $142 or just over 3%. So silver is moving down faster than gold and I want to point out that gold is essentially flat for the year. It started right around $4,300. Silver is now down for the year. It started at $71 an ounce. We're now below 70 and this is the lowest price silver has been since March. Another thing I want to look at is the gold silver ratio. It is now sitting at 63. So for my personal buying strategy and includes buying both gold and silver at these prices. So why are gold and silver moving lower? Well, one of the main things to blame is the employment situation summary that was released this morning by the US Bureau of Labor Statistics. And if we take a look at this data here, you can see this is the employment situation for May 2026 and the total non-farm payroll employment increased by a hundred and seventy-two thousand jobs in May. Now, this number was only projected to come in at about 85,000 jobs. So it beat out expectations. And what this means is that the Fed can actually raise rates because the economy is doing so well. Now, this is one of those things that we've been looking at for years because whatever the Fed does with rates, this is going to have a great effect on the price of precious metals directly because it's going to affect the strength of the dollar. So if rates come down, if the Fed has to lower rates to save the economy, then that's going to push gold and silver higher. But on the flip side, if they raise rates, that's going to make the dollar stronger and that's going to push gold and silver lower. So if we fast forward to the end of the year, you can see projections are that rates are actually going to go up one, possibly even two times before the year is out. And if we fast forward about a year down the road from now, you could see we're looking at two, maybe three rate hikes. And so if the labor market continues to look resilient as we saw in that report this morning with all of these jobs that were created in May and with the unemployment rate Essentially being unchanged. This has the trickle-down effect of again, signaling to the Fed. We can actually raise rates. The economy is doing okay. And this is making the dollar a lot stronger and weighing heavily on both gold and silver. You could see here the US dollar index exploding higher this morning right when all of that data was released. And when it comes to the volatility of precious metals, silver is much more volatile, which is why we're seeing it fall so much faster today. Now precious metals aren't the only thing falling today. You can see Bitcoin is down about 5% on the day. So a similar move to what we saw in silver. But if we look at Bitcoin year to date, you can see it's down now over 30%. So cryptos are also getting hammered but moving back over to silver. I have to say I know a lot of us are not done stacking yet. We still want to acquire more metal. And one of my favorite times to buy is when the price is going down when I see red across the board that just screams to me. This is a buying opportunity. You can now get more metal for your money today than you could have yesterday by a pretty big margin and silver started out the year above $70 an ounce. We are now below 70. So if the year ended today silver would actually be down for the year. So this is a massive opportunity in my opinion and look at this gold now testing key horizontal support after breaking below. It's three year uptrend. And as I said earlier gold is actually really close to being down for the year as well. So I don't know how long this opportunity is going to last. Also, we are seeing the Shanghai silver premium Titan. So one of the other things we've been seeing this year is Shanghai lead the way when it comes to price Discovery. Well silver is now below $80 an ounce in Shanghai. So in the East and the West we're seeing silver crash. One other thing I want to point out is that this is not totally unexpected for silver to be going down in June of all months. Look at what Hugo posted today. Silver's June gloom what the 27-year Matrix tells us. So the monthly average for silver in June is for it to be down 1.7%. This is Silver's worst performing month of the year. It only has a 33% win rate or I should say 33.3% win rate or one-third only nine positive years out of 27. So this is one of the things that I've been talking about on this channel for a while is that silver and gold typically don't do that. Well during the summer. They're usually flat or even down but June in particular is usually Silver's worst month. So I'm really not that surprised to see silver going down right now. There are a few banks that have now revised their silver price predictions for the year lower one of which is UBS the bank now forecasts silver prices at $85 at the end of Q2 2026 down from their earlier Outlook of $100. The September Target was also lowered to 85 from 95 the year end Target to 80 from 85 and the March 2027 forecast to 75 from 85. So they think silver price is going to be lower in Q2 lower at the end of the year and even lower next year. The revision is based on a reassessment of the markets overall supply demand imbalance UBS now projects the 2026 silver market supply deficit to narrow to roughly 60 to 70 million ounces a dramatic reduction from the previous estimate of 300 million ounces consistent with the smaller deficit. We have trimmed our price Outlook across all forecast Horizons in our base case. We expect silver to trade broadly sideways. The strategist said UBS pointed to gold as a stabilizing force that prevented them from projecting even deeper price drops. We still expect gold prices to trend higher providing an important anchor for silver. The strategist said noting that the correlation between gold and silver prices has increased recently just to give you one more perspective Commerce Bank actually changed their gold and silver price projections as well. And they did so yesterday the German Bank now forecasts gold will finish the year at roughly 4,800 per ounce down from an initial projection of 5,000. They are also maintaining their gold price forecast of 5,200 per trillion ounce for the end of 2027. So they definitely see gold moving higher this year and next year as far as silver is concerned. They expect silver price to end the year around $80 per ounce, but unlike UBS, they think silver will go up next year and end 2027 right around $90 per ounce. However, that is down from their previous price target of 95 per ounce in 2027. It can be very hard to guess correctly when it comes to these price projections and predictions. I myself have been wrong many many times but long-term. I do think we're going to see gold and silver continue to move higher. I think we're going to continue to have inflation forever until the dollar is eventually gone. So I prefer to save my money and precious metals and when we have big down days like we have today. I prefer to buy more precious metals. So silver is now down over $5 on the day almost a 7% drop. This is a great opportunity in my opinion to pick up more metal and if the price continues to fall next week, I'm probably going to do yet another purchase. But what do you think? Where do you see precious metals going from here? Let me know down below in the comment section. Thank you so much for watching and I will see you all in my next one. Silver Dragons out.