Silver Crashes Most Since Lehman Bankruptcy

Just as retail daytraders started to flood into precious metals, with Robinhood's retail army making SLV one of their most popular positions just last Friday...

... we got a very vivid reminder of just how fickle retail mood can be, and with gold hitting a near-decade high of $30 just a few days ago, the precious metal is down as much as $4...

... with today's drop as much as 13.5%, the biggest since the Lehman bankruptcy.

Needless to say, we expect the next update of Robinhood users holding SLV to show a dramatic plunge.

Silver is not alone, with gold also sliding below $2,000 as CTAs reverse and sell programs kick in...

... however the drop is far more measured, and as a result the gold/silver ratio is spiking.

Of course, since this is a forced liquidation it is providing great arb opportunities to the coming round of buyers (if anyone thinks the Fed is really about to allow 3% inflation which will destroy the bond market, we have a gold-plated bridge to Brooklyn to sell to you), real rates indicate that gold is now about $60 cheap.

And one final observation from Peter Schiff: