Why Silver, Copper & Crude Oil Prices Are Tanking

On Thursday, April 3, global commodity markets faced a severe sell-off following the US government's decision to impose steep reciprocal tariffs. The move sparked concerns about slowing global trade, reduced industrial activity, and declining economic momentum, leading to fears of a decrease in commodity demand. This resulted in sharp declines in core commodities like silver, crude oil, and copper.

The Commodity Crash Explained

Thursday's trading was brutal across the board:

• Silver prices collapsed by 6.11% - a massive drop for the precious metal
• Brent Crude nosedived 5.21% as traders panicked about fuel demand
• Copper tumbled 4.33%, reflecting serious concerns about manufacturing

Let's be honest - these aren't small fluctuations. We're talking about significant price swings that show real fear in the market.

Why Silver Prices Are in Free Fall

Silver's 6.11% plunge is particularly eye-opening. Unlike gold, which often holds up better during uncertainty, silver got hammered because:

• Manufacturing slowdowns mean less industrial silver usage
• Factory cutbacks directly impact silver demand
• Trade uncertainty has investors dumping "riskier" metals

The silver market was already fragile, and these tariffs might be the straw that breaks the camel's back.

Crude Oil's Painful Correction

That 5.21% drop in oil prices? It's all about demand fears. When trade slows, shipping slows. When manufacturing slows, energy needs drop. It's a domino effect that oil traders saw coming from a mile away.

Traders are now left wondering if we're seeing a short-term market hiccup or the first signs of a prolonged downward spiral. We guess that we'll see more volatility before things stabilise.

Copper: The Economic Warning Bell

Copper Price, often seen as a bellwether for industrial activity, also declined by 4.33%. Copper's widespread use in construction, electronics, and manufacturing makes it especially vulnerable to macroeconomic headwinds.

As global manufacturers brace for potential supply chain disruptions and export/import hurdles, the Copper Price reflects growing concern about the global economy's health.

Winners and Losers

The stock market on 4th April showed exactly who gets hurt (and who benefits) when commodity prices tank:

• Metal and energy stocks got crushed: Hindalco (-5.99%), ONGC (-6.30%), Oil India (-5.91%)
• Airlines like Indigo (+1.80%) celebrated lower fuel costs
• Refiners like IOCL and BPCL couldn't decide if this was good or bad news, as they opened with a gap-up, but later faced corrections as the trading session progressed.

Note: Returns mentioned are intraday at around 11 am on 4th April.

What Happens Next?

The market hates uncertainty more than anything. Expect commodity prices to remain jittery until we see how these tariff threats play out.

The smart money is betting on eventual compromise through bilateral trade deals with USA, but until then, buckle up for a bumpy ride in the commodity space. Keep a close eye on silver, particularly - its dramatic fall suggests there might be more pain ahead.