The gold-silver ratio just broke through the 50 mark, and you have to go back to 2011 to find a similar scenario. During that sharp correction, silver even dropped to around 32.

Many people think that the sharp decline in silver was due to negative news, but that's not the case. The real factor that can crush the price is often the risk management threshold.

During the most severe part of the 2011 correction, exchanges repeatedly increased margin requirements over just 8 days, causing trading costs to rise by a staggering 84%. This not only increased the burden on traders holding positions but also triggered chain liquidations, causing the market to fall like a wound-up machine, growing more and more intense. The increase in margin requirements and the falling prices reinforced each other, creating a vicious cycle. This is the true driving force behind the collapse of silver.