Silver Analysts Reverse Stance Following 31 Per Cent Crash
Market Overview and the 31 Per Cent Correction
The global silver market has recorded a significant price contraction, with valuations dropping by 31 per cent in a condensed trading window. This movement represents one of the most substantial percentage declines in the history of the precious metal, impacting both spot prices and futures contracts. According to data reported by TheStreet on 1 February 2026, the volatility has led to a sharp reassessment of market positions by institutional observers. The 31 per cent crash has effectively erased gains made over previous quarters, bringing the metal to a technical threshold that has forced a re-evaluation of short-term and long-term price targets.
The scale of the decline has had immediate repercussions across the commodities sector. Silver, which functions both as a financial asset and an industrial commodity, often experiences higher volatility than gold due to its smaller market cap and extensive use in manufacturing. The recent 31 per cent drop has triggered automated sell orders and margin calls, further accelerating the downward pressure before a period of relative stabilisation was observed. This specific percentage drop is being cited by market participants as a “record” event, suggesting that the velocity of the decline exceeded previous historical benchmarks for the asset class.
The Analyst Reversal and TheStreet Report
In a notable shift in sentiment, two analysts who had previously issued warnings regarding a silver price tumble have officially changed their outlook. As reported by TheStreet, these individuals had warned earlier in the week that silver would experience a downturn, but the magnitude of the 31 per cent crash has prompted a “bombshell reversal” in their professional stance. The transition from a bearish outlook to a revised position suggests that the analysts now perceive the market as having reached a potential floor or a point of exhaustion for sellers.
The details regarding the specific identities of the analysts remain tied to the internal reporting of TheStreet, yet the impact of their reversal is being felt across trading desks. In the financial industry, such a rapid change in sentiment usually indicates that the fundamental drivers of the initial bearish thesis have been fully priced in by the 31 per cent move. When analysts “change their tune” following a crash, it often signals to the broader market that the risk-to-reward ratio has shifted in favour of buyers or, at the very least, that the period of aggressive selling may be concluding.
Background and Market Drivers
Prior to the record crash, the silver market had been under scrutiny due to various macroeconomic factors. Analysts had been monitoring interest rate trajectories, currency fluctuations, and industrial demand forecasts. The initial warnings issued by the two analysts mentioned by TheStreet were predicated on the expectation that silver would “tumble,” a prediction that was realised with unexpected severity. The background of this crash involves a complex interplay between speculative trading and physical demand.
Historically, silver prices are influenced by the strength of the US Dollar and the performance of the manufacturing sector, particularly in electronics and renewable energy. In the days leading up to the 1 February 2026 report, market conditions appeared to align with the bearish forecasts. However, the sheer scale of the 31 per cent decline surpassed many initial projections. This background of extreme volatility provides the context for why a reversal in analyst sentiment is considered a significant development. The transition from warning of a tumble to changing their tune suggests that the analysts are now analysing the recovery potential of the metal.
Impacts on Industrial and Investment Sectors
The 31 per cent crash in silver prices has direct implications for several key sectors. In the industrial sphere, silver is a critical component in the production of photovoltaic cells for solar panels, as well as in automotive electronics and 5G infrastructure. A sudden drop in price can lower input costs for manufacturers, though it may also signal concerns regarding a broader industrial slowdown. TheStreet’s report highlights that the reversal by analysts comes at a time when these industrial consumers are assessing their procurement strategies for the remainder of the fiscal year.
On the investment side, the impact is equally pronounced. Exchange-traded funds (ETFs) that track the price of silver have seen significant outflows and subsequent re-balancing. Retail investors, who often hold silver as a hedge against inflation or currency devaluation, have had to navigate a rapidly changing environment where their holdings lost nearly a third of their value in a short period. The reversal of the bearish stance by prominent analysts may serve to stabilise investor sentiment, providing a counter-narrative to the panic selling that typically accompanies a 31 per cent market correction.
Reactions from the Financial Community
The reaction to the analyst reversal has been one of cautious observation. Within the financial community, the move by the two analysts to change their tune is being scrutinised for its timing and its basis in technical data. Market participants often look to such reversals as contrarian indicators. If analysts who were previously bearish suddenly turn neutral or bullish following a crash, it can lead to a “short squeeze,” where traders who bet against the metal are forced to buy back their positions to limit losses, further driving a price rebound.
Institutional reactions have varied, with some firms maintaining their existing models while others are adjusting their exposure to precious metals. The report from TheStreet indicates that the “bombshell” nature of the reversal stems from the fact that the analysts had been vocal about the downward risks only days prior. This rapid pivot is a testament to the unprecedented nature of the 31 per cent crash, which has forced even the most committed bears to reconsider their projections in light of new price realities.
Next Steps and Future Market Trajectory
Moving forward, the silver market will likely focus on whether the 31 per cent crash represents a long-term bottom or a temporary pause in a larger downtrend. The next steps for market participants involve monitoring support levels and looking for signs of physical buying at these lower price points. TheStreet’s reporting suggests that the analysts’ change in tune will be a focal point for traders looking for a signal to re-enter the market.
Technical analysts will be watching for a “dead cat bounce” or a genuine trend reversal. The fact that two analysts have already changed their tune provides a psychological foundation for a potential recovery. However, the broader economic environment, including central bank policies and global industrial output, will ultimately determine if silver can recover the ground lost during the record crash. Details regarding the specific price targets following this reversal remain unclear, as the market continues to process the immediate aftermath of the 1 February 2026 events.
Summary of Current Conditions
As of the latest reports, the silver market remains in a state of high sensitivity. The 31 per cent crash has redefined the trading range for the metal, and the reversal of bearish sentiment by key analysts has introduced a new variable into market calculations. While the initial warnings of a tumble were accurate, the velocity of the crash has led to a significant shift in professional outlooks. TheStreet continues to monitor the situation as the commodities market reacts to these developments.
The focus now shifts to the resilience of the silver price at these new levels. With analysts changing their tune, the narrative surrounding silver is transitioning from one of impending doom to one of potential stabilisation. Whether this shift in sentiment will be followed by a sustained price recovery remains to be seen, but the record 31 per cent crash has undoubtedly marked a turning point in the 2026 commodities cycle. The market continues to digest the implications of this bombshell reversal as trading volumes remain elevated in the wake of the crash.