Overview
- Silver plunged from an all-time high of about $121.67 an ounce on Jan. 29 to roughly $66 per ounce by early June, a drop of about 46 percent that has erased much of last year’s gains.
- The peak was driven by surging industrial use for solar panels, EVs, electronics and data centers plus tight mine supply, while the reversal reflects weaker industrial spending and firms switching to cheaper metals.
- A late‑February geopolitical shock linked to the Iran war pushed oil and inflation higher and rekindled fears of higher interest rates, which strengthened the dollar and weighed further on silver prices.
- The iShares Silver Trust (SLV), the largest silver ETF with about $32.5 billion in assets, charges a 0.50% annual sponsor fee that is paid by selling physical silver, which reduces the metal backing per share and can drag long‑term returns versus spot silver.
- If substitution by manufacturers persists, demand could stay muted and slow any sustained price recovery, which would matter for miners, industrial buyers and retail investors deciding between physical silver and ETF exposure.