- Silver price has tumbled by 45% from its highest point this year.
- The SLV ETF has shed over $3.6 billion in assets in 2026.
- The ongoing Iran war will have a negative impact on the economy.
Silver price has crashed and entered a technical bear market, falling by 45% from its year-to-date high, making it one of the worst-performing assets in financial markets. XAG dropped to a low of $67 from the year-to-date high of $121.
SLV ETF Outflows Are Soaring
The ongoing silver price crash has coincided with gold’s price, which has tumbled over the past few weeks. Silver is often seen as gold’s little cousin, and their prices are usually more correlated.
The decline is therefore occurring as investors book profits after it jumped by over 320% from its lowest level in April last year to its highest point in 2025. It is common for an asset that has experienced such a big move to pull back as investors book profits.
The drop is also happening because the Iran war has started, pushing more investors to rotate to other assets, including Bitcoin and Ethereum. Silver jumped ahead of the war, and now investors are offloading it as it started.
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Silver has also dropped because the war will negatively impact the economy. Analysts believe the war will affect most countries as inflation rises and travel disruptions persist. In a statement this week, the World Trade Organization (WTO) said the global GDP will drop by 0.3%. Some countries, such as Kuwait and Qatar, may shrink by more than 10% this year.
The silver price is often influenced by global economic performance because, unlike gold, it has an industrial role. It is widely used to manufacture products like solar panels and computer chips. This also explains why other industrial metals like copper and aluminum have plunged.
Another reason why the Silver has plunged is that Wall Street investors have continued to dump silver ETFs. Data shows that the iShares Silver Trust (SLV) has had outflows in the last three consecutive weeks. The fund shed over $713 million this week, after shedding $835 million the week before. It has lost over $3 billion in assets this year.
Silver Price Prediction: Technical Analysis
The daily timeframe chart shows that silver has declined from a high of $121 in January to $67 today. It has dropped to the lowest level since February 6 this year.
Silver also formed a head-and-shoulders pattern, a common bearish reversal sign in technical analysis. It has also dropped below the 50-day and 100-day Exponential Moving Averages (EMA).
Silver’s Relative Strength Index (RSI) has dropped and is now nearing the oversold level of 30. Also, the Average Directional Index (ADX) has jumped to 17 and is nearing the crucial 20 level.
Therefore, silver may continue falling in the near term, potentially to the key support level at $50, which is about 26% below the current level.
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