Should You Buy the iShares Silver Trust ETF After Its Steep Sell-Off?

What goes up tin travel down. We saw that axiom play retired successful a large mode past week. Shares of the iShares Silver Trust (NYSE: SLV) exchange-traded money (ETF) had skyrocketed 277% higher implicit the erstwhile 12 months arsenic of Thursday, Jan. 29, 2026.

Then the bottommost fell out. This high-flying ETF plunged astir 30% connected Friday, the past trading time of January.

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However, the other of the aforementioned adage is besides true: What comes down tin spell backmost up. Should you bargain the iShares Silver Trust ETF aft its steep sell-off?

The iShares Silver Trust provides retail investors with an casual mode to summation entree to carnal silver. This ETF tracks the regular terms fluctuations successful silver. As metallic prices soared successful caller months, truthful did the iShares Silver Trust's stock price.

However, immoderate argued that silver's momentum (and, by extension, that of the iShares Silver Trust) had gone excessively far. For example, JP Morgan (NYSE: JPM) analysts wrote soon earlier past week's meltdown that metallic futures were heavy overbought. Maximilian Tomei with Galena Asset Management precocious warned, "The mode metallic is behaving is exaggerated. It's a bid of disconnects. The marketplace is broken."

Indeed, investors who usage method investigation could person easy identified that some metallic prices and the iShares Silver Trust showed signs of a classical "blow-off top" -- a signifier successful which prices emergence parabolically but past collapse. Before past week's plunge, the iShares Silver Trust was much than 100% supra its 200-day moving average, a awesome often associated with a blow-off top.

But different origin besides contributed to the important decline. President Trump announced connected Friday that helium was nominating Kevin Warsh to regenerate Jerome Powell arsenic president of the Federal Reserve. Many investors saw Warsh's enactment arsenic a awesome that the Fed's independency would beryllium preserved.

Both metallic and golden prices had tally up successful portion due to the fact that the commodities are wide viewed arsenic harmless havens. With fears astir the Fed moving amok waning pursuing Trump's announcement astir Warsh, immoderate saw an accidental to instrumentality profits disconnected the array with metallic and gold. The aboriginal selling rapidly accelerated into a broader sell-off.

However, metallic has moved beyond being conscionable bullion. In November 2025, the U.S. Department of the Interior designated metallic arsenic a "critical mineral" that is "vital to the U.S. system and nationalist security." Why? Primarily due to the fact that metallic is utilized successful information centers that big artificial quality (AI) systems. With the continued roar successful information halfway construction, request for metallic is apt to summation importantly implicit the adjacent 5 years.