The iShares Silver Trust (SLV) experienced a sharp pre-market plunge of 10.39% on Friday, reflecting extreme volatility in the silver-backed ETF.
The decline follows a historic rally that pushed silver prices to a record high earlier in the week, triggering significant profit-taking by investors. Market analysts have described the silver market as "tactically overbought" and "dysfunctional," driven more by speculative capital from individual investors than fundamental factors, raising fears of a sharp reversal.
Further pressure stems from stark warnings that silver prices could collapse by approximately 50% from current levels, coupled with broader concerns about Federal Reserve independence and monetary credibility. The combination of an overheated technical condition and shifting risk sentiment has prompted a substantial correction.
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