• Track silver tracking SLV ETF here.

Volatility Is The Price Of Admission

Silver's violent price swings are not a bug — they're the feature. In an exclusive email interview with Benzinga, Ed Egilinsky, managing director and head of Sales, Distribution & Alternatives at Direxion, was blunt about the risks, noting that "silver can be volatile and has experienced drawdowns (peak to valley declines) of over -50%."

History confirms it: silver rarely corrects gently, and overbought signals matter.

Chart created using Benzinga Pro

Why This Rally Feels Different

Instead, silver has rallied during a period when market volatility has remained mostly muted. That points to demand coming from somewhere else — namely industrial usage tied to AI infrastructure, semiconductors, and renewable energy.

Structural Demand Vs Tactical Exhaustion

While near-term cooling wouldn't be surprising, the demand drivers beneath silver look increasingly durable. These end markets are expanding regardless of short-term macro noise, giving silver something it has often lacked: a non-speculative floor.

Silver may be overheated in the short run, but pullbacks could increasingly look like volatility — not the end of the story. “For those individuals who find it difficult to time the Silver market or commodities in general, might consider more of a ‘buy and hold approach’ to commodities…Right now, based on price trends, the strategy continues to be long both Gold and Silver,” said Egilinsky.

Photo: Shutterstock