Shares of iShares Silver Trust (SLV) plunged 3.6% in pre-market trading on June 5, 2026, dropping to $64.56 from a prior close of $66.98 — a move that significantly exceeds the ETF's typical daily swing of roughly 2.5%. The selloff reflects a broader rout in precious metals as investors grapple with renewed fears of higher interest rates and escalating geopolitical risks. Silver's Sharpest Drop in Months Raises a Hard Question: Is the Metal's Monster Rally Running Out of Fuel?
Shares of iShares Silver Trust slid 3.6% in pre-market to $64.56, well beyond the ETF's typical 2.5% daily swing, as silver buckled under a toxic mix of rate-hike fears and Middle East turmoil. Since the U.S.-Iran conflict began in late February, silver has lost about 20% as surging oil prices fueled inflation fears and increased the likelihood of higher interest rates. For SLV holders — who own fractional claims on physical silver stored in vaults — this week's slide from $68.33 on May 29 to today's pre-market price represents roughly 5.5% of value erased in five trading days.
• A Hawkish Fed Is Turning Investors Away from Metals That Pay No Interest. The Fed held rates at 3.5% to 3.75% at its last meeting, but four policymakers dissented — the most dissents since late 1992.
Cleveland Fed President Beth Hammack said the Fed could be forced to raise rates soon if inflation pressures continue to intensify.
Silver, like gold, does not produce income, meaning rising bond yields and higher interest rates make other investments more attractive. That math directly erodes the case for parking money in SLV.
• Oil, War, and the Strait of Hormuz Are Driving the Inflation Scare. The prolonged conflict and the near-shutdown of the crucial Strait of Hormuz have kept energy prices elevated, fueling inflation concerns and reinforcing expectations of tighter monetary policy.
Analysts warn it would take a reopening of the Strait to quiet inflation alarms, and even then, supply levels could remain critically low for months. That means the pressure on SLV could persist well beyond any ceasefire headline.
• Silver Is Still Up Massively — and That Cuts Both Ways. Over the past month silver's price has fallen 5.82%, but it is still 102% higher than a year ago.
J.P. Morgan expects silver to average around $81 per ounce during 2026 , while Citigroup has a target of $110 per ounce for the second half.
Silver markets have been experiencing structural supply deficits — the world is consuming more silver than it produces — which continues to provide a supportive backdrop for prices. But analyst targets mean nothing if the Fed actually hikes.
• The June 16–17 Fed Meeting Is the Next Tripwire. Prediction markets price a 97.8% probability the Fed holds rates at its June meeting. But chances of a rate hike before year-end rose to 3.5%, up from zero, driven by fast-ascending oil prices. If the new Fed Chair Kevin Warsh signals any willingness to tighten, SLV faces another leg down. The metal's long-term industrial story — solar panels, electronics, AI infrastructure — remains intact, but short-term, the interest-rate math is working squarely against it.