Silver's Sharp Retreat: WisdomTree ETC Faces Steepest Monthly Drop in Years

WisdomTree's silver ETC drops sharply on profit-taking, but long-term industrial demand from solar sector provides underlying support despite near-term headwinds.

The WisdomTree Physical Silver EUR exchange-traded commodity (ETC) is navigating a significant downturn, with silver posting one of its most severe monthly declines in over a decade. The asset's value fell by nearly 20% in March 2026, marking the most pronounced contraction since September 2011.

A Rally Unwinds

This pullback follows an exceptional performance period. Throughout 2025, silver's gains even outpaced those of gold, substantially altering the long-standing historical ratio between the two precious metals. Having reached a 52-week high equivalent to approximately €88.83 earlier in the year, the WisdomTree ETC has since relinquished more than a third of its value.

Market strategists attribute the current weakness primarily to profit-taking. Both institutional and private investors are locking in gains after the metal's extraordinary run, a dynamic that does not signify a fundamental reassessment of silver's value. The core structural drivers for the commodity remain largely unchanged.

Industrial Demand Provides a Foundation

A record appetite from the solar industry, particularly driven by China's energy transition, continues to underpin silver's long-term outlook. This sustained industrial consumption has contributed to a persistent global supply deficit in recent years, a key factor supporting prices over the longer horizon.

However, near-term headwinds are applying pressure. A robust US dollar and the prevailing interest rate environment are creating drag. Furthermore, the market is witnessing the effects of "thrifting"—a process where manufacturers, faced with high silver prices, seek to reduce the amount of metal used in their products. This behavior has the potential to temper demand over the medium term.

Structural Stability Amid Volatility

With assets under management of around €2.79 billion, the WisdomTree Physical Silver EUR ETC remains one of Europe's largest physically-backed silver products. The underlying bullion is held by HSBC and conforms to the London Bullion Market Association's (LBMA) Good Delivery standards, a structural strength that provides stability during turbulent market phases.

The critical question is whether the current consolidation level near €57 per unit will establish a durable floor. The answer hinges significantly on the trajectory of interest rates and the dollar in the coming weeks, alongside the solar sector's ability to meet robust industrial demand expectations.