Has the Silver Sell-Off Finally Run Its Course?
Published on 04/01/2026 at 01:07 | Redaktion boerse-global.de
Following a sharp decline from its January peak, the silver market is showing tentative signs of stabilization. The WisdomTree Physical Silver EUR ETC is now trading within a narrow range, with several key indicators suggesting the most intense selling pressure may have subsided for now.
Structural Demand Provides a Solid Base
Beyond price charts, fundamental demand presents a compelling case for silver. Industry analyses from Peel Hunt and TheStreet indicate the market is heading toward its sixth consecutive annual supply deficit. While mine production is projected to reach approximately 1.05 billion ounces in 2026, this will be insufficient to meet growing demand from the solar energy sector, electric vehicle manufacturing, and AI data center infrastructure.
Concurrently, the late March Commitments of Traders (COT) report hints at a cautious shift in sentiment. Speculative traders increased their long positions by 2,813 contracts, marking the first significant weekly rise after a prolonged period of reduction. This activity suggests institutional investors are increasingly viewing the recent price correction as a potential entry point.
Should investors sell immediately? Or is it worth buying WisdomTree Physical Silver EUR?
A 44% Correction Points to Technical Exhaustion
Silver reached an all-time high near $121 per ounce in January 2026. What ensued was a severe correction of 44%, triggered by margin hikes on the CME and a strengthening US dollar. The spot price has since been oscillating between $68 and $71—a range many market technicians are interpreting as a potential technical floor.
This view is supported by key technical indicators. Daily charts reveal a formation known as a "hidden bullish divergence," where price levels hold steady even as momentum indicators have reset. This pattern typically signals that selling momentum is largely exhausted.
The Outlook for Q2 and Beyond
Could the current gold-to-silver ratio of 63:1 serve as a buy signal? Historically, this level has often indicated periods where silver is undervalued relative to gold. Whether this leads to silver outperforming gold will depend heavily on the future policy direction of the US Federal Reserve.
Major bank forecasts provide specific price targets. J.P. Morgan anticipates an average price of $81 per ounce for 2026, while UBS has set a year-end target of $85. The critical factor will be whether the Fed signals interest rate cuts in the second half of the year. Such a policy shift would likely act as a significant catalyst for the non-yielding precious metal.
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Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
