Silver Plunges 20%, Wiping Out Gains Amid Extreme Volatility

• Silver prices plunged by 20% on Thursday, continuing a significant decline and wiping out all gains from a recent rally.
• Spot silver tumbled to $64 an ounce in early Asian trading, marking a more than 40% retreat from its January 29 record high.
• The white metal's market is smaller and less liquid than gold, leading to more violent price swings, with recent volatility being the most extreme since 1980.
• Market makers are widening spreads and reducing balance-sheet usage due to increased volatility, further exacerbating liquidity issues.
• Despite silver's struggles, many banks and asset managers maintain a bullish long-term outlook for gold, with some expecting it to reach $6,000 an ounce.