New York, Feb 1, 2026, 06:11 (EST) — Market closed
- First Majestic Silver tumbled 17.3% to $20.84 on Friday, as silver suffered its worst one-day plunge ever recorded.
- CME plans to raise margins on Comex silver futures following Monday’s close, potentially curbing leveraged trades.
- Investors are eyeing U.S. factory data set for Monday and the February 6 jobs report as potential catalysts for the dollar and interest rate expectations.
Shares of First Majestic Silver Corp dropped 17.3% to $20.84 on Friday, with about 61 million shares changing hands.
The metal’s move came after a sharp plunge: spot silver tumbled 27.7% to $83.99 an ounce, following a record high of $121.64 just a day earlier, even dipping to $77.72 at its lowest point. “A combination of these drivers has helped trigger profit-taking,” said Suki Cooper, global head of commodities research at Standard Chartered. Shares in Hecla Mining Co. dropped 14.5%, Pan American Silver Corp slid 13.9%, and Coeur Mining Inc fell 16.8%. The Global X Silver Miners ETF lost 14.7%. (Reuters)
Leverage is heating up again. CME Group Inc. announced it will boost the initial margin on COMEX 5,000-ounce silver futures from 11% to 15%, starting after the close on Monday, Feb. 2. Since margin acts as cash collateral, this hike could push some traders to cut back their positions. (CME Group)
Macro politics played a role in driving the dollar, which usually weighs on dollar-priced metals. U.S. President Donald Trump announced he would nominate Kevin Warsh to head the Federal Reserve once Jerome Powell’s term expires in May. (Reuters)
Economic data dealt another blow to the “easy cuts” trade. U.S. producer prices climbed 0.5% in December, surpassing expectations of a 0.2% rise, signaling persistent inflation pressures. (Reuters)
“The market believes Kevin Warsh is rational,” said Tom Price from Panmure Liberum, as investors cashed out following a busy stretch in precious metals trading. Ole Hansen of Saxo Bank called the rally “highly speculative.” (Reuters)
Friday served as a stark reminder for miners: stocks can act like leveraged silver. But when the metal rebounds, shares can just as easily gap in the opposite direction.
First Majestic posted a record 15.4 million ounces of silver production for 2025 earlier this month. The company projects 2026 silver output between 13.0 and 14.4 million ounces from its four operating mines in Mexico, including Los Gatos. CEO Keith Neumeyer described 2025 as “transformational” and announced a Feb. 19 call to discuss fourth-quarter results and dividend updates. (First Majestic Silver)
The situation remains fragile. Should silver remain volatile and tighter margin requirements squeeze liquidity, miners could face another round of selling pressure — even absent new company announcements.
Upcoming key data hits quickly: Monday brings the Institute for Supply Management’s factory index, with the January jobs report from the U.S. Bureau of Labor Statistics set for Feb. 6. First Majestic’s next major event is its earnings call on Feb. 19. (Ismworld)
