Silver Price Collapses by Nearly Half as Interest Rates and Inflation Fears Bite

Silver has experienced a significant downturn in recent months, losing nearly half its value since hitting a 52-week high of $109.83.

The iShares Silver Trust (SLV) closed at $54.95 on Monday, down 5.49% from the previous day's close and 49.97% below its high.

Despite this decline, investors who purchased SLV a year ago still hold a 31.27% gain, with the five-year return standing at 175.44%.

The drawdown in silver prices is largely attributed to the recent surge in interest rates and inflation fears, which have led to a strengthening dollar and higher bond yields.

USAGOLD described the selloff as 'a purely macro, paper-market repricing,' with the calm VIX of 14.21 supporting this view.

BMO cut its Q4 silver forecast to $67.40 but raised its long-term target to $47, implying a possible year-end bounce within a longer downtrend.