Silver Plunges as Markets Approve Nominee Selected to Head the Fed

Last week saw the price of silver drop after President Trump revealed plans to nominate Kevin Warsh as the next Head of the Federal Reserve. Warsh is a bank executive and financier who’s previously served as a member of the Fed’s Board of Governors and has now been named as the president’s choice to head that institution after Jerome Powell retires from the role. 

The reaction highlights how swiftly sentiment toward silver can reverse when markets reassess the outlook for American interest rates and central bank leadership. The sharp selloff also underscores how sensitive precious metals markets remain to shifts in expectations around U.S. monetary policy. 

Investors appeared to interpret the nomination as a signal of greater stability and predictability at the Federal Reserve, reducing the immediate appeal of silver as a defensive asset and triggering a rapid repricing across the market. 

Spot silver fell by over 37%, trading at roughly $84.63 per troy ounce, with precious metals markets operating nearly around the clock. Despite this drop though, the metal’s price is still up by over 150%, in comparison to this same time in 2025. 

Spot gold also declined last week, though the drop was far less pronounced than the selloff seen in silver. The metal’s prices were down roughly 11%, trading at about $4,864 per troy ounce. Much like silver, gold has posted strong gains over the past year driven by investors piling into traditional safe-haven assets amid uncertainty in global markets and the broader economy. Even after last week’s setback, gold remained more than 70% higher on a year-on-year basis. 

At the same time, the greenback strengthened on Friday, snapping a recent slide that accelerated earlier in the week when the currency recorded its steepest single-day decline since Q2 of last year. The simultaneous move by investors to offload traditional safe-haven metals while bidding up the U.S. dollar points to rising market confidence, a shift partly attributed to the belief that Warsh would bring steady, seasoned leadership to the Federal Reserve. 

Historically, Warsh has been viewed as an advocate of monetary restraint, having largely resisted interest-rate cuts during his tenure on the Fed’s board where he favored restraint over aggressive stimulus. More recently, however, he has moderated his stance, aligning himself more closely with Trump, criticizing the current Federal Reserve, and signaling greater openness to rate reductions. 

In other news, U.S. equities ended the week modestly lower, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all slipping as investors also digested other developments, including an unexpectedly strong jump in the Producer Price Index. 

Enterprises like Collective Mining Ltd. (NYSE American: CNL) (TSX: CNL) with interests in exploring for precious metals like gold and silver in the Americas will have to analyze what the implications of a Warsh-led Fed may be over the long term. 

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