Silver just pulled back to $100 after hitting a recent all-time high near $120, and the move has sparked a lot of noise. On the surface, it looks dramatic. Fast selling, heavy red candles, and a sharp flush lower always grab attention.
But this wasn’t a collapse in demand.
As analyst Honza Černý explained, what we just saw was a paper liquidation, not a breakdown in the physical silver market. The drop cleared out leverage and short-term positioning in Western markets, not real ownership.
What you'll learn 👉
The Pullback Was in Paper—Not in Physical Silver
The most important detail sits outside the usual Western charts.
While silver futures and CFDs were being dumped, physical silver in Shanghai kept trading roughly $25 per ounce above Western prices. That premium didn’t disappear after the dip from $120. It stayed wide.
If silver were suddenly abundant, that spread would close quickly. Metal would move. Prices would converge.
That didn’t happen.
Instead, paper prices fell while physical prices held firm. That kind of divergence doesn’t show weakness. It shows stress inside the pricing system.
This isn’t a silver crash.
— Honza Černý (@honzacern1) January 30, 2026
This is a PAPER liquidation.
Western paper silver just got flushed.
CFDs, leverage, stops — gone.
Meanwhile in the real world 👇
Shanghai silver is still trading ~$25/oz ABOVE the West.
If silver were “abundant,” that spread would close instantly.… pic.twitter.com/L5g8xEeRok
Why the $120 to $100 Move Matters
Drops from all-time highs often look violent, especially when leverage is involved. When silver ran to $120, positioning became crowded. Stops stacked up. The market became fragile.
The move back to $100 forced that excess out.
CFDs, leverage, and short-term longs were wiped. That’s uncomfortable, but it’s also how overheated markets reset. Physical holders didn’t panic. Premiums didn’t collapse. Delivery markets stayed tight.
That’s a key distinction.
East vs West: The Same Metal, Two Prices
This move once again exposed how different the silver market looks depending on where you trade.
In the West, silver is mostly traded as a contract. It’s easy to sell, easy to liquidate, and heavily influenced by leverage.
In the East, silver is treated as metal. Delivery matters. Inventory matters. Availability matters.
That’s why Western prices can swing hard while physical markets stay steady. Paper can be forced to sell. Physical can’t.
Read also: This Analyst Makes a Shocking Silver Price Prediction
Silver Price Outlook After the Pullback
Silver sitting at $100 after a run to $120 resets the broader move.
Paper excess is gone. Physical demand is still there. The premium gap hasn’t closed. Those conditions tend to appear after peaks, not at the end of cycles.
This pullback wasn’t a sign that silver broke. It was a reminder of which market actually sets the floor.
And right now, that floor isn’t being defined by paper.
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