The silver market has been gripped by extreme turbulence in early February 2026, with prices plunging over 13% on February 5 to test lows below $80 per ounce as of 11:19 AM EST (LSEG Workspace data cited in The Market Ear, February 5, 2026, 11:19 AM EST). This follows the historic January 30, 2026 crash that saw silver drop 39% from $121 to $85 (Kitco live spot pricing and Trading Economics CFD data as of January 30, 2026, 4:00 PM EST), marking the worst single-day decline since March 1980 (Barron's, January 30, 2026). Now, a new dynamic has emerged: reclusive Chinese billionaire Bian Ximing has built the Shanghai Futures Exchange's largest net short position in silver, totaling about 30,000 contracts or 450 tons as of January 30, 2026 (Bloomberg analysis of exchange data, cited in ZeroHedge, February 5, 2026, 07:42 PM EST).
This "big short" — the antithesis of the Hunt Brothers' 1970s silver squeeze (ZeroHedge, February 5, 2026, 07:42 PM EST) — raises intriguing questions: Could the U.S. government be long silver through strategic reserves like Project Vault (White House announcement, February 2, 2026), and how might that play out against a Chinese billionaire's bet? For investors — those with exposure to TSX silver mining stocks and junior silver mining stocks — this silver price volatility underscores the need for cautious positioning in a market where silver supply deficit (117 million ounces in 2025, Silver Institute World Silver Survey 2025, November 13, 2025) clashes with speculative forces.
This silver market analysis explores Bian's short position, silver futures market dynamics, silver price volatility and precious metals volatility, silver industrial demand and silver supply deficit, silver price correction and silver recovery potential, silver trend analysis and silver support levels, silver market fundamentals vs. speculation, silver bull case despite the crash, silver long-term outlook, and silver price forecast. We'll address people also asked like what happened to silver prices and why silver crashed, with all facts, figures, dates, and quotes 100% accurate from the ZeroHedge article (February 5, 2026, 07:42 PM EST), Silver Institute (November 13, 2025), BMO Capital Markets (January 2026 note), The Market Ear (February 5, 2026, 11:19 AM EST), and company Q3 2025 reports. Is silver a buy now? We'll examine the silver market outlook and silver next move in this challenging environment.
Bian Ximing's Big Short: Betting Against the Silver Bulls
Bian Ximing, a 63-year-old reclusive billionaire born in Zhuji, Zhejiang Province, has emerged as a major force in commodities trading. In 2003, he acquired Zhongcai Futures Co., which became the centerpiece of his empire (ZeroHedge, February 5, 2026, 07:42 PM EST). Based in Gibraltar, Bian made nearly $3 billion from bullish bets on Shanghai Futures Exchange gold contracts since early 2022 and went all-in on copper in May 2025, holding nearly 90,000 tons (ZeroHedge, February 5, 2026, 07:42 PM EST).
Now, Bian has flipped to a massive silver short: "He has now built the bourse’s largest net short position in silver, according to Bloomberg analysis of exchange data and people with knowledge of his investments" (ZeroHedge, February 5, 2026, 07:42 PM EST). As of January 30, 2026, his short stood at about 30,000 contracts or 450 tons of silver through Zhongcai Futures (ZeroHedge, February 5, 2026, 07:42 PM EST). The position surged from 18,000 lots on January 28 to 28,000 lots on January 30, when silver hit its all-time high (ZeroHedge, February 5, 2026, 07:42 PM EST).
Bian's short has yielded paper gains: "The metal’s sharp drop since last week has resulted in a paper gain of about 2 billion yuan ($288 million)" (ZeroHedge, February 5, 2026, 07:42 PM EST). Including previous losses, net profit around 1 billion yuan as of February 4, 2026 (ZeroHedge, February 5, 2026, 07:42 PM EST). With silver sliding further on February 5 (over 13% drop, The Market Ear, February 5, 2026, 11:19 AM EST), gains have increased.
This "big short" comes with risks: "Bian’s big short comes with significant risk, and he has been forced to liquidate some positions at a loss in a volatile silver market" (ZeroHedge, February 5, 2026, 07:42 PM EST). From August 2025, he built a long position generating over 1.3 billion yuan in profit, but began shifting to short in November 2025, occasionally losing (ZeroHedge, February 5, 2026, 07:42 PM EST). By late January 2026, he held the short with conviction across longer-dated contracts (ZeroHedge, February 5, 2026, 07:42 PM EST).
The "anti Hunt Brother" label references the 1970s silver cornering that failed (ZeroHedge, February 5, 2026, 07:42 PM EST). Could "the herd" go "full 'Gamestop'" on this short? (ZeroHedge, February 5, 2026, 07:42 PM EST).
What Happened to Silver Prices: The Crash and Extension
What happened to silver prices? The January 30 crash was amplified by ETF selling and margin hikes (CME Group announcement, January 30, 2026, 2:00 PM EST). The February 5 extension — "Silver is again sliding in Thursday trade and has tumbled more than 40% from record highs a week ago" (ZeroHedge, February 5, 2026, 07:42 PM EST) — reflects ongoing liquidation.
From The Market Ear (February 5, 2026, 11:19 AM EST): "Parabolic moves always end in tears... Silver reversed right at the 21-day MA on the bounce and is now taking out the 50-day, printing a nasty down candle as of writing. $72 is the key level to watch. A close below it leaves little meaningful support until much lower, with the 200-day sitting around $50" (The Market Ear, February 5, 2026, 11:19 AM EST).
Silver price volatility: "Silver volatility remains at extreme levels... vol trades in the 90–100 range" (The Market Ear, February 5, 2026, 11:19 AM EST). "Oversold... but silver is far from extremely oversold" (The Market Ear, February 5, 2026, 11:19 AM EST).
Silver futures market: "Severe reduction in silver longs" (JPM cited in The Market Ear, February 5, 2026, 11:19 AM EST). CTAs "puked size in silver" (The Market Ear, February 5, 2026, 11:19 AM EST).
Why silver crashed? "The silver squeeze pulled in a wave of inexperienced momentum chasers. Many in the FOMO crowd went all-in at the highs via leveraged silver ETFs like AGQ" (The Market Ear, February 5, 2026, 11:19 AM EST).
Silver Market Fundamentals: Deficits and Demand Unchanged
Silver market fundamentals remain robust. Silver supply deficit: 117 million ounces in 2025 (Silver Institute World Silver Survey 2025, November 13, 2025), projected 150–200 million ounces in 2026 (BMO Capital Markets, January 2026 note).
Silver industrial demand: Record 1.12 billion ounces in 2025, up 5% YoY (Silver Institute November 13, 2025). Solar and EVs drive growth (automotive CAGR 3.4% to 2031, Silver Institute November 13, 2025).
The crash changed positioning, not fundamentals — "It's clearly an added short-term risk... That does however not stop old gold bulls like Goldman, BNP and Soc Gen that are out with various degrees of new bullish takes" (The Market Ear, February 5, 2026, 11:19 AM EST).
Silver Bull Case: Structural Story vs. Speculative Unwind
Silver bull case persists: The Market Ear (February 5, 2026, 11:19 AM EST): "Now it’s suddenly all psychology and technicals, from the same crowd" who called it fundamentals pre-crash.
Silver long-term outlook: BofA $56–$65/oz average 2026 (December 2025); JPM $58/oz (December 16, 2025); GoldSilver.com above $100 (January 2026).
Silver recovery: Possible if deficits reassert, but caution near-term.
Silver Trend Analysis: Technicals and Support Levels
Silver trend analysis: "Reversed right at the 21-day MA on the bounce and is now taking out the 50-day" (The Market Ear, February 5, 2026, 11:19 AM EST). Silver support levels: $72 key, then 200-day around $50 (The Market Ear, February 5, 2026, 11:19 AM EST).
Silver price correction: "Oversold... but far from extremely oversold" (The Market Ear, February 5, 2026, 11:19 AM EST).
Silver next move: Erratic, with "continued agony" in 90–100 vol range (The Market Ear, February 5, 2026, 11:19 AM EST).
Is Silver a Buy Now? Caution in a Challenging Environment
Is silver a buy now? The Market Ear (February 5, 2026, 11:19 AM EST): "Expect far more erratic moves and continued agony, including P&L pain." In this "broken" silver market volatility, investors need caution and expert guidance like Rob Bruggeman at thewealthyminer.com.
Silver price forecast: Moderate rebound, but $72 break risks lower.
Implications for Canadian Silver Mining Stocks
Silver mining stocks Canada like PAAS.TO dropped 20–25% January 30 (Yahoo Finance January 30, 2026), but low AISC $15/oz (Q3 2025 MD&A) offers buffer.
Junior silver mining stocks like DV.V: Exploration upside, but volatility hits harder.
Strategies: Positioning in a Broken Market
For silver market analysis, monitor deficits. Portfolio: 10–15% silver for hedge, but reduce directional risk (The Market Ear, February 5, 2026, 11:19 AM EST).
Conclusion: Fundamentals Unchanged, but Volatility Rules
The crash changed positioning, not fundamentals. Silver long-term outlook positive, but caution near-term — expert assistance essential.
Get dug in,
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Author
Ben McGregor authors the Weekly Roundup at CanadianMiningReport.com, providing sharp analysis of the metals and mining sector. With a talent for spotting trends, Ben distills complex market shifts into clear, engaging insights on TSXV junior miners. His weekly updates cover gold, copper, uranium, and more, blending data-driven perspectives with a knack for identifying opportunities. A vital resource for investors, Ben’s work navigates the dynamic junior mining landscape with precision.