Industrial Demand and Supply Deficit Propel Triple-Leveraged Silver ETC Rebound Amid Shifting Fed Bets
Published on 07/05/2026 at 17:07 | Redaktion boerse-global.de
The WisdomTree Silver 3x Daily Leveraged ETC has clawed back some of its recent losses, surging 15.88% over the past week to close at $8.54 on Friday. That marked its fourth consecutive session in the green, with the single-day gain amounting to 4.85%. Yet the monthly picture remains brutal: the geared product has still shed 44.42% over the past month, and its annualized 30-day volatility sits at a dizzying 149.68% — or approximately 150%, depending on the calculation window. The 14-day relative strength index stands at 36.0, signaling a moderately oversold condition after the recent rout.
The catalyst behind the rebound came from an unexpectedly soft US jobs report. The economy created just 57,000 new positions in June, falling well short of the 110,000 that analysts had been expecting. The unemployment rate ticked up to 4.2%. The weak data immediately reshaped expectations for Federal Reserve policy. According to the CME FedWatch Tool, the probability of a rate hike in September collapsed from 66% to 50%, while other market gauges pegged the chance at around 53%. That shift drove the US dollar lower, providing a tailwind for precious metals. Spot silver surged past the psychologically important $60 mark and closed at $62.30, up 2.24% on the day, taking its weekly gain to 8.93%. During the week, prices briefly touched levels around $63.
Beyond the macro catalyst, a structural deficit in the silver market is underpinning prices from the physical side. The global silver supply gap is expected to widen from 40.3 million ounces last year to 46.3 million ounces in 2026. Industrial demand is a key driver: solar panels now account for roughly 15% of global silver consumption, and production of solar energy components grew 8.9% year-on-year in the second quarter. The electronics sector, including 5G infrastructure, adds another 22% of demand. On the supply side, the iShares Silver Trust added 36.5 tonnes of silver in early July, bringing its total holdings to nearly 15,000 tonnes, a sign that institutional investors are using the pullback to accumulate physical metal.
Should investors sell immediately? Or is it worth buying WisdomTree Silver 3x Daily Leveraged?
The WisdomTree product tracks the triple daily performance of silver futures via synthetic replication under swap agreements, with a total expense ratio of 0.99%. It is fully collateralized. This leveraged structure means that every percentage-point move in the underlying silver index translates into roughly a three-point move in the ETC — in either direction. That explains the extreme volatility: the product can claw back double-digit gains in a week, but it also suffered a 44% monthly loss before the recent recovery. A forecast model cited in one report projects silver prices could climb another 6.23% to $66.26 by July 10, though that depends heavily on incoming economic data.
The week ahead is packed with potential triggers. The Federal Reserve will release the minutes of its latest policy meeting on July 8, followed shortly by fresh US inflation figures. Both events are likely to inject further volatility into the silver market and, by extension, into the geared ETC. From a technical perspective, spot silver faces initial resistance at $62.40, with support directly below at $62.20. For a triple-leveraged product already riding a 150% volatility wave, each data release carries outsized consequences.
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