Leveraged Silver Bets Take Another Hit Amid Dollar Strength
The WisdomTree Silver 3x Daily Leveraged exchange-traded product has suffered a significant decline, falling by over 13% to close at $6.45. This sharp drop marks another brutal stretch for the leveraged vehicle, which has now lost more than 80% of its value since the start of the year.
The trigger for this move was a pullback in the underlying silver price to around $58.84 per ounce. While this decline may seem modest for physical silver, the product's three-times daily leverage amplifies percentage moves into double-digit territory.
A strengthening US dollar is adding to the pressure on the leveraged silver bets. The dollar index has climbed to a three-week high, making silver more expensive for buyers using other currencies. At the same time, the yield on ten-year US Treasuries rose to 4.714%, lifting the opportunity cost of holding non-yielding assets like precious metals.
Industry reports indicate that the silver market is heading for its sixth consecutive deficit year in 2026, with mine production struggling to keep pace with global demand. Mining output is slow to respond to price increases because silver is typically extracted as a byproduct of other metals.