Silver Eyes $92, Brings Historic 1980s 'Silver Thursday' Crash Back In Focus

Silver prices surged to fresh all-time highs on Wednesday, testing the $92 per ounce level, fueled by steady U.S. inflation and geopolitical instability, though analysts warn the vertical rally mirrors the prelude to the infamous 1980 market crash.

Inflation And Geopolitics Fuel Historic Surge

Silver spot prices hit an all-time high of $91.564, trading firmly within the resistance zone of $90.15–$92.40 identified by market analysts. The metal is currently trading up 3.84% on the day at $90.2635.

According to Rahul Kalantri, VP of Commodities at Mehta Equities Ltd., the rally is driven by a “perfect storm” of supportive macro data and safe-haven demand.

Softer-than-expected U.S. inflation data—with Core CPI holding steady at 2.6% year-on-year—has cemented expectations for two to three Federal Reserve rate cuts in 2026.

Simultaneously, global uncertainty is driving capital into precious metals. “Civil unrest in Iran and rising geopolitical tensions continued to fuel safe-haven demand,” Kalantri noted.

The Ghost Of ‘Silver Thursday’

While bulls celebrate the breakout, historical comparisons suggest caution.

Charlie Bilello, Chief Market Strategist at Creative Planning, highlighted that silver prices have tripled over the past year, marking the most aggressive year-over-year gain since early 1980—the era when the Hunt brothers attempted to corner the silver market.

Bilello warned that the 1980 rally ended in catastrophe. “Silver Thursday” (March 27, 1980) followed shortly after that peak, with prices collapsing over 50% in a single trading session.

By 1982, the metal had lost 90% of its value. The current vertical ascent has raised fears that the market may be overheating, similarly to that historic bubble.

Key Technical Levels To Watch

As traders navigate this volatility, Kalantri outlines critical technical boundaries.

For spot Silver, immediate support lies between $86.10 and $84.75, while the $92.40 level remains the key ceiling to break.

Here are a few silver and silver mining-linked ETFs that investors can consider.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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