After the massive earthquake in silver on a single day, the trend has become a mystery: six key signals reveal the future market game.

Recently, the unusual volatility in silver has attracted the attention of the era - even Elon Musk and others have started to pay attention to the metal's sharp rise towards historical highs. On Monday morning, the price of silver skyrocketed to a record level of over $84 per ounce, only to quickly plummet to nearly $70 in the post-holiday trading. This was one of the biggest price reversals in silver history. So far this year, the price of silver has maintained an increase of around 140%. Now the biggest question is: what will be the next trend for silver? Below are key charts to observe the silver market and assess future trends. Chinese Demand The increased interest of Chinese investors is the main drive for the recent rise in silver prices. Speculators have flocked to buy this precious metal, mirroring the dynamics in the platinum market. In December, the purchase volume of silver contracts on the Shanghai Gold Exchange climbed, pushing premiums to historical highs and boosting other international benchmark prices. After multiple risk warnings were ignored, this fierce rebound forced the only pure silver fund in China to refuse new customers last week. The fund manager announced this unusual move last Friday. Prior actions, from tightening trading rules to warning against "unsustainable" price increases, failed to quell the investment frenzy incited by social media. ETF Inflows This year, holdings in silver Exchange-Traded Funds (ETFs) backed by physical assets have surged, increasing by over 150 million ounces. Although the total metal held by these funds is still below the peak reached during the Reddit-driven retail investor frenzy in 2021, the inflow of funds has played a key role in eroding an already tight market supply. According to calculations, the holdings of these funds have been increasing every month this year except for one. Technical Indicators and Margin In December alone, the price of silver has risen by over 25%, potentially setting the largest monthly increase since 2020. Such a rapid rise means that some technical indicators are signaling that the price is rising too quickly and too high. The Relative Strength Index (RSI) for silver - an indicator measuring buying and selling momentum - has remained above 70 for much of the past few weeks. A reading above 70 usually indicates that too many investors have bought the asset in a short period of time. Some exchanges are taking action to control risks in the face of increased volatility. According to a statement from the CME Group, margins for certain Comex silver futures contracts will be raised starting on Monday. This adds market resistance as traders need to invest more funds to maintain their positions. Some speculators are unwilling to do so, leading them to either reduce their positions or close them. Option Frenzy One sign of speculative fervor is the level of purchases of call options on silver futures and related ETFs. Call options give buyers the right to purchase securities at a predetermined price, usually seen as a cheap way to bet on a market rally. For the largest silver ETF - iShares Silver Trust (SLV), the total open interest in call options reached its highest level since 2021 this week. The cost of buying call options on silver futures has also skyrocketed to historical highs in recent weeks, compared to put options that prevent price drops. Borrowing Costs Due to trade factors related to tariffs, most of the available silver globally remains in New York warehouses. Meanwhile, the market is still awaiting the results of the "232 investigation" into key minerals by the United States, which could result in tariffs or other trade restrictions on the metal. The influx of metal into the United States led to a complete "squeeze" in the London market in October, and borrowing costs in the London market are currently far higher than the normal level close to zero. This has set the stage for increased volatility and frequent price spikes. Catching up with Gold Supported by factors such as a weak dollar, the radical trade measures of President Donald Trump, and threats to the independence of the Federal Reserve, overall investment demand for precious metals has surged this year. Gold rebounded first, benefiting further from strong buying by global central banks. Some market observers believe in a rule of thumb: when gold makes a decisive move, silver will eventually move in the same direction but twice as far - and this year, they are right. Many investors also track the ratio between these two commodities. After an initial surge in gold earlier this year, the gold-silver ratio expanded to over 100:1, signaling to some to buy silver. However, in recent weeks, this ratio has rapidly decreased.