Just a day before the historic crash, JP Morgan had predicted that silver prices could be cut in half. Their price prediction has almost turned accurate, as the XAG/USD index crashed 30% on Friday, reaching a low of $75.
On January 27, 2026, JP Morgan analyst Marko Kolanovic, who is the former chief strategist and co-head of global research, warned that silver prices are on the way to a 50% crash. Just two days later, silver prices lost 30% of their value, erasing most of this year’s gains.
Also Read: Gold Futures Crash After Chinese Speculators Trigger Metals Selloff
Why JP Morgan Predicted That Silver Prices Would Crash 50%?
JP Morgan’s Kolanovic argued that the surge in silver prices was not due to fundamentals but rather had traces of speculative trading. It described its rise as speculative activity and called the rally a “meme traders attempting to take over the market.”
The JP Morgan strategist compared the shiny metal’s rise in the charts to that of the meme currency market frenzy. Kolanovic‘s negative view on silver played out in real-time in just two days after his crash prediction.
However, silver prices fell by 30% and not by 50%, as stated by the JP Morgan analysts. Nonetheless, if the weakness persists and triggers another round of sell-offs, then the 50% crash prediction could also turn true.
After silver climbed above the $110 mark, the JP Morgan analyst called the current trend “unsustainable.” In his view, the XAG/USD index is primed for a 50% reduction in value and remains negative on its prospects.
While JP Morgan is bearish on shiny metal, it remains bullish on gold. A recently released note to clients shows that the global bank is projecting gold prices to reach $8,000 by the end of the decade. That’s another 65% surge in the next five years, as central banks have been accumulating the glittery metal.