Leni@lenion
🚨SILVER IS REPEATING THE 2011-2013 CRASH SCENARIO
I've seen this before, and I don't like how it ends
Since January 2026, silver has dropped around 48% from its all-time high of $121.6/oz, making January and February some of the worst months since 2011
The scenario is repeating almost perfectly:
Rally → ATH → Hawkish Fed → ETF outflows → Loss of momentum → Deep Correction
1. After the ATH, profit-taking accelerated
Just like in 2011, silver rallied for years on inflation fears, geopolitical tensions, and expectations of a structural supply deficit
But after the peak, the momentum started to fade
2. The Fed is once again the main source of pressure
Kevin Warsh's hawkish stance and expectations of tighter monetary policy are strengthening the dollar and pushing real yields higher - a bearish scenario for silver
With money rotating from commodities into equities as the U.S. economy stays resilient, silver tends to underperform gold
3. Safe-haven demand is fading
If tensions around Iran, the Middle East, or other geopolitical conflicts continue to ease, the safe-haven premium will keep shrinking
Money will start flowing back into risk assets again
4. ETF outflows and speculative positions are unwinding
During the 2026 correction, silver ETF saw noticeable outflows as investors reduced exposure and risk appetite faded
Historically a sign of changing market sentiment
5. Margin requirements and leverage
Back in 2011, CME margin hikes were one of the main catalysts behind the crash
Today's market once again looks dominated by speculation after a parabolic rally
6. Fundamentally, silver is stronger than in 2011 due to a structural supply deficit and rising industrial demand
However, the speculative and investment side of the market is behaving almost the same way it did in 2011
And unlike gold, silver doesn't benefit much from central bank buying, since central banks mainly accumulate gold, not silver
If the 2011-2013 analogy keeps playing out:
The current decline may not be the end of the correction
A move down to the $50-55 range is possible, and in a more bearish scenario, silver could even fall toward $40+ over the next 6-18 months before industrial demand and supply deficits take control again
I've said this before, and everything is still playing out exactly according to plan
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