"Silver just delivered one of its worst weeks in recent history. The iShares Silver Trust ( NYSE:SLV) plunged 35.6% to around $68, erasing months of gains in just five trading days. The speed and severity of the collapse has retirees asking whether this represents a rare buying opportunity in precious metals or a warning sign that commodity exposure doesn't belong in retirement portfolios."
"The collapse wasn't subtle. President Trump's nomination of Kevin Warsh as Federal Reserve Chairman triggered an immediate selloff across precious metals. Warsh's hawkish reputation strengthened the dollar and made non-yielding assets like silver suddenly less attractive to investors seeking returns in a higher-rate environment. The decline accelerated as significant redemptions from the iShares Silver Trust ETF created selling pressure, while contracting manufacturing data from China signaled weakening industrial demand for the metal."
SLV plunged 35.6% to about $68 over five trading days, wiping out months of gains. President Trump's nomination of Kevin Warsh as Federal Reserve Chairman strengthened the dollar and prompted a precious-metals selloff by making non-yielding assets less attractive in a higher-rate environment. Large redemptions from the iShares Silver Trust ETF added selling pressure while contracting Chinese manufacturing signaled weaker industrial demand. The futures market remained in backwardation, indicating immediate physical scarcity despite the ETF's losses. Over the past year, SLV rallied 132% driven by industrial demand from solar panels, electric vehicles, and AI infrastructure. SLV pays no dividends and charges a 0.5% fee, reducing its suitability for retirees seeking income.
Read at 24/7 Wall St.
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