Three Notable Factors Determining the Silver Downtrend

Silver's Sharp Decline and Future Expectations

In recent days, silver prices have entered a concerning phase for investors. The historic drop experienced on Friday has led to significant losses, and commodity analyst Jeffrey Christian warns that this volatility may continue. Following speculation created around precious metals like gold, silver prices increased by over 200%, but it has been observed that individual investors' interest in silver has decreased recently.

Signs Triggering the Decline

1. Decrease in Trading Activities

Christian notes the declining interest in silver, stating that this situation could mean an exit for speculative investors from the market. Along with the price movements of silver, the demand for silver ETFs and bonds is being closely monitored. According to VandaTrack Research data, individual investors drew attention by purchasing shares worth $171 million in the iShares Silver Trust ETF. However, it remains uncertain whether this trend will be sustainable in the short term.

2. Increase in Re-supply

Silver supply is going through a tough period due to the imbalance in demand in recent years. Reports from the Silver Institute and Metals Focus predict that silver supply will increase by 2% by 2025, while demand is expected to decrease by 1%. Christian points out that this increase could put pressure on the markets. Record levels of silver reserves that could be extracted and the backlog of orders at refineries are notable factors increasing supply pressure.

3. Decrease in Open Positions

It has been noted that the high number of open positions in silver futures in previous periods supported prices. Particularly, the active March 2026 silver contracts on the COMEX exchange show approximately 500 million ounces of silver. However, if open positions decrease, upward pressure on silver prices may lessen. This scenario could create concern in the markets.

In summary, these three factors that investors should closely monitor are among the decisive elements regarding the future trajectory of silver prices. A market filled with significant fluctuations and risks is forcing investors to develop new strategies.