Silver has plunged nearly 20% in a month as rising inflation fears, higher interest-rate expectations and renewed conflict in the Middle East trigger a sharp reversal in one of 2026’s hottest trades.

Silver prices tumbled on Wednesday, June 10, 2026, falling below $65 per ounce on the COMEX exchange and reaching their lowest level since March. The decline caps a brutal month for a metal that had been among the strongest-performing assets of the year.

The selloff has been particularly painful for investors in the iShares Silver Trust (SLV), the largest silver-backed exchange-traded fund. The fund closed at $59.01 on June 9 and has fallen approximately 19% over the past month.

The latest drop came as the United States launched fresh military strikes against Iran following the reported downing of an American helicopter, escalating concerns about inflation and energy prices.

At first glance, the reaction may seem counterintuitive.

Precious metals are often viewed as safe-haven assets during geopolitical crises. However, the market’s focus has shifted toward the inflationary consequences of rising oil prices and what that could mean for interest rates.

Higher inflation increases the likelihood that the Federal Reserve will keep interest rates elevated—or potentially raise them further.

That creates a problem for silver.

Unlike stocks, bonds, or savings accounts, silver generates no income. It pays no dividends and no interest. When investors can earn higher returns from cash or fixed-income investments, non-yielding assets such as silver become less attractive.

The decline has been dramatic, but it follows an equally extraordinary rally.

Even after the recent selloff, silver remains approximately 77% higher than a year ago and has more than doubled over the past five years.

Earlier in 2026, silver surged above $100 per ounce, reaching levels not seen in modern trading history before reversing sharply.

On January 30, silver experienced its largest one-day decline on record, falling as much as 35% intraday. Combined with a simultaneous plunge in gold prices, the selloff erased trillions of dollars in market value across precious-metals markets.

Analysts have been warning for months that silver prices had become disconnected from underlying fundamentals.

Colin Steel, an analyst at HSBC, recently described silver as fundamentally overvalued despite maintaining a constructive long-term outlook. Other market observers argued that speculative trading had overwhelmed traditional supply-and-demand factors.

When markets become dominated by momentum-driven investors, sharp corrections often follow once sentiment changes.

Silver’s volatility stems from its unique position in the global economy.

Unlike gold, which is primarily an investment asset, silver serves both as a precious metal and as a critical industrial commodity.

It is widely used in:

• Solar panels
• Electronics
• Semiconductors
• Medical devices
• Electrical components
• Advanced manufacturing

That dual identity means silver prices are influenced by both investor psychology and industrial demand.

Recently, the industrial side of the equation has weakened.

Solar-panel manufacturers, one of the largest consumers of silver, have steadily reduced the amount of silver used in each panel through technological improvements. Those efficiency gains have reduced demand growth and removed one of the strongest supports for higher prices.

For investors, the latest plunge serves as a reminder that silver is often far more volatile than many people assume.

While often grouped with gold as a defensive asset, silver has historically experienced much larger price swings. Investors who purchased near this year’s highs are now facing substantial losses, while longer-term holders remain well ahead despite the correction.

The decline also carries implications for businesses.

Lower silver prices can eventually reduce costs for manufacturers that rely heavily on the metal, including renewable-energy companies, electronics producers and medical-device manufacturers.

Silver mining companies face the opposite challenge.

When silver prices fall sharply, profit margins can compress quickly, placing pressure on mining stocks and future investment in production capacity.

Not everyone believes the selloff will continue.

Some investors view the correction as a buying opportunity, citing long-term concerns about mine supply, growing industrial applications and potential shortages of above-ground inventories.

Supporters of the bullish case argue that increasing demand from clean-energy technologies and emerging industrial applications could eventually tighten supplies.

For now, however, markets are focused on more immediate concerns.

A widening conflict with Iran, rising oil prices and renewed inflation fears have shifted investor attention toward interest rates rather than precious metals.

Whether silver stabilizes or falls further will depend largely on three factors: the path of the Middle East conflict, the direction of energy prices and future signals from the Federal Reserve.

After one of the most volatile years in its history, silver remains one of the market’s most unpredictable assets.

JBizNews Desk — Markets

© JBizNews.com All Rights Reserved. Reproduction or distribution without written permission is prohibited.