The precious metals market just experienced its most violent upheaval in more than four decades, and smart investors could see this carnage as a golden opportunity. Silver futures fell to US$78.53 on Friday in a historic rout that left even seasoned traders stunned.
The metal, which had ridden a wave of demand and safe-haven speculation, gave back gains in spectacular fashion as leverage declined and margin calls forced traders to dump their positions.
Silver prices plummeted after President Donald Trump named Kevin Warsh as the next chairman of the Federal Reserve to replace Jerome Powell when his term ends in May.
Warsh has argued for tighter monetary policy throughout his career, and his announcement sent the dollar up about 0.8%. A stronger dollar makes dollar-priced metals less attractive to foreign buyers, while higher interest rates increase the opportunity cost of holding non-yielding assets like gold and silver.
The strength of the dollar index, combined with a possible deal between the US and Iran, eased geopolitical tensions. That one-two punch ended the fear premium that had sent metals into nosebleeds.
Why the silver crash creates opportunities
Despite Friday’s brutal sell-off, silver is still up about 15% this year, while gold is up 8% in 2026. Both metals had record-shattering rallies in 2025, with silver surging 145% and gold surging 65%.
The fundamentals that support precious metals have not changed.
- Central banks continue to buy gold to diversify away from dollar reserves.
- Trump’s trade policies and foreign intervention are making countries nervous about holding U.S. assets.
- And the Fed remains on the easing path even with Warsh potentially at the helm.
Investors looking to take advantage of the sell-off may want to consider gaining exposure to metal streaming companies such as Wheaton Precious Metals (TSX:WPM). Typically, streaming companies buy metals at fixed prices from mining operations, providing leverage on rising commodity prices without the operational risks of actually extracting ore from the ground.
With a market capitalization of more than $80 billion, WPM shares have nearly tripled in the past three years. Wheaton just announced two new streaming deals: one for the Hemlo mine in Ontario and another for the Spring Valley project in Nevada. The company expects to add approximately 250,000 ounces annually by 2029, nearly double the growth of its closest competitors.
WPM stock is down 13% from its all-time high and is trading at a premium valuation in February 2026. Analysts who follow WPM stock predict revenue will rise from $1.3 billion in 2024 to $3.5 billion in 2027.
In comparison, free cash flow is expected to increase from $400 million to $2.33 billion over this period. If the TSX mining stock is priced at 30 times forward FCF, which is reasonable, it should rise 25% over the next twelve months.
With silver still trading well above year-to-date levels and streaming companies positioned to benefit from an eventual rebound, contrarian investors are looking at last week’s chaos as a rare entry point into one of the best-performing asset classes of 2025. The key question isn’t whether metals will recover; what matters is whether you will have the courage to buy when everyone else is selling.
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