WisdomTree’s 3x silver ETC drops to $23.24 on inflation surprise, rising dollar, while structural deficit and geopolitical risks underpin silver’s long-term outlook.
A sharp 5.99% decline in WisdomTree’s triple-leveraged silver ETC on May 12 sent the product to $24.50, down from the prior session’s $26.06, and extended the pain into the following day when it traded around $23.24. The sell-off came just four days after a 1-for-10 share split was executed on May 8, and it was accompanied by a surge in volume to roughly 200,000 shares — a pattern technical analysts view as a clear warning of mounting distribution. The average true range-derived expected daily swing of 11.63% for May 13 underlined just how volatile the three-times leveraged structure has become in this environment.
The timing could hardly be more challenging. US inflation accelerated to 3.8% in April, the hottest reading since May 2023, while core inflation came in at 2.8%, both exceeding expectations. Markets now price in a greater than 70% probability that the Federal Reserve will raise rates by April 2027, and any hope of a cut before year-end has all but evaporated. A stronger dollar and rising real yields weigh heavily on non-yielding assets like silver, and the triple-leveraged ETC amplifies each downdraft.
Yet silver’s macro story is far from one-sided. Geopolitical risks — particularly the tensions in the Middle East, uncertainty surrounding the Strait of Hormuz, and the knock-on effects on oil prices — have lent support. The scheduled meeting between Donald Trump and Xi Jinping on May 14-15 added another layer of uncertainty, with markets watching for any trade or growth signals that could shift industrial demand. The metal’s spot price had surged more than 6% earlier in the week to $85.50 per ounce before giving up those gains, a pattern that illustrates how sensitive the market has become to headlines.
Should investors sell immediately? Or is it worth buying WisdomTree Silver 3x Daily Leveraged?
Underpinning the longer-term thesis is a structural deficit that refuses to budge. The Silver Institute projects 2026 will be the sixth consecutive year of supply shortfall, with a gap of 46.3 million ounces and global supply sliding 2%. On the demand side, physical investment in bars and coins is expected to climb to 227 million ounces, fueled by Western buyers and sustained Indian appetite. Critically, much of the silver used in industrial applications remains effectively locked in after installation, creating a persistent drawdown of above-ground stocks.
Not all demand drivers are firing equally. Solar photovoltaic manufacturers consumed 186.6 million ounces of silver in 2025, a 6% decline from the prior year as producers sought to use less silver per cell amid elevated prices. That segment is forecast to shrink another 19% in 2026. The slack, however, is being taken up by data centers, artificial intelligence infrastructure, electric vehicles, and power grid investments — areas that are expected to become meaningful new pillars of silver consumption.
Major banks reflect the range of views. J.P. Morgan sees silver averaging $81 in 2026. UBS predicts a mid-year rally toward $100 before a retreat into the mid-80s. Goldman Sachs puts the metal in an $85–$100 range and calls it a key metal in the green transition. For the WisdomTree ETC, which holds €330 million in assets, charges 0.99% annually, and has been listed since December 17, 2012, the leveraged replication of the Solactive Silver Commodity Futures SL Index means each daily reset can amplify both gains and losses.
Technically, the ETC now faces a critical test at $22.30, a level that represents the next major support, with a volume-weighted floor further down at $21.80. Resistance sits at $24.63, and the MACD has already flashed sell signals after a local high earlier in the week. Over the past two weeks the product still carries a gain of 34.5%, but the correction of the last 48 hours has eroded that cushion. If support at $22.30 holds, the post-split price action may stabilize; if it breaks, the slide could accelerate toward $21.80. The same leverage that powered the ascent now magnifies every setback in a market torn between macro headwinds and a stubborn supply deficit.
Ad
WisdomTree Silver 3x Daily Leveraged Stock: New Analysis – 14 May
Fresh WisdomTree Silver 3x Daily Leveraged information released. What’s the impact for investors? Our latest independent report examines recent figures and market trends.
Read our updated WisdomTree Silver 3x Daily Leveraged analysis…