Silver and gold dropped sharply as the dollar strengthened and bond yields jumped, which is bad for metals holders but shows money moving into bonds and cash.

• Silver fell over 10% and gold dropped 3% in one day, even though inflation is still high.
• The 30-year Treasury topped 5.1% and the 10-year is near 4.6%, which will push mortgage rates higher.
• Metals move on sentiment in the paper market, so they can fall fast even when the inflation story looks bullish.
• Big investors are rotating out of silver into bonds, betting that when rates eventually fall, the high-yield bonds they buy now will jump in value.
• Taking profits on silver doubles or triples and moving the money into the next cycle (bonds, then housing) is the playbook being pitched.

Outlook: If bond yields keep climbing, gold and silver will likely stay under pressure and mortgage rates will keep rising, hurting housing.