Triple-Leveraged Silver ETC Hit by Back-to-Back Losses as Rate Jitters and Supply Tightness Vie for Control

WisdomTree's 3x leveraged silver ETP fell 9.37% in a single day as silver volatility intensifies, driven by hawkish Fed policy, industrial demand shifts, and divided analyst forecasts.

Silver’s recent price swings have been brutal enough for the metal itself, but the triple?geared WisdomTree Silver 3x Daily Leveraged ETP has turned those moves into outright punishment for short?term speculators. On Tuesday, the product plunged 9.37% to close at $16.03, with an intraday range of nearly 16%. The carnage came just a day after the underlying metal had rallied 2.55% to $78.40 an ounce, a gain that briefly lifted spirits before the macro headwinds returned.

That Tuesday rout was not an isolated incident. On 19 May, silver itself tumbled 5.00% to $73.78, and the triple?levered ETC – which amplifies daily index moves by a factor of three – suffered an even steeper percentage loss. The volatility reflected a market torn between competing forces: robust industrial demand and physically tight supply on the one hand, and persistently hawkish Federal Reserve policy on the other.

The immediate trigger for the May slide was stronger?than?expected US inflation. The April consumer price index came in at 3.8%, above consensus, dampening hopes that the Fed would soon pivot to rate cuts. Higher?for?longer borrowing costs are typically bearish for non?yielding assets like precious metals, and silver – which had rallied sharply in the weeks before – was especially exposed. Just days earlier, a détente in US?China trade tensions had sent the metal surging 6% on 11 May, fuelling optimism about industrial demand. The whipsaw left leveraged products reeling.

Analysts are now adjusting their models to reflect a more uncertain path. HSBC raised its average price forecast for the current year to $75 per ounce, while pencilling in year?end targets of $70 for 2026 and $65 for 2027 – well below the recent peaks. J.P. Morgan Global Research, by contrast, sees average silver prices of $81 in 2026, with the broader LBMA analyst consensus hovering around $80. The divergence underscores just how divided the market is on the medium?term outlook.

Underpinning the bullish case is a genuine structural deficit in physical silver. Industrial applications – from solar panels to AI hardware – continue to draw on already strained inventories, while geopolitical tensions in the Middle East reinforce the argument for renewable energy investment. Yet even that narrative is fraying. Photovoltaic manufacturers are reducing silver content per panel, and forecasts for 2026 show industrial demand from the sector falling by roughly 19%, with jewellery and silverware seeing declines of 9% and 17% respectively.

The triple?levered product itself is designed for tactical, short?duration bets. With an annual management fee of 0.99% and a structure based on collateralised swaps, it amplifies the daily returns of the Solactive Silver Commodity Futures SL Index. WisdomTree has seen strong interest in its ETP suite, with net inflows of $5.9bn in the first quarter alone; the silver ETC now holds around €330m in assets. But the volatility means anyone holding the instrument through multiple sessions faces path?dependency risk that can erode returns even if the metal eventually recovers.

For now, traders are watching the next batch of macro data – the FOMC minutes and preliminary US purchasing managers’ indices – for clues on whether the Fed will maintain its tough stance. If rates stay elevated, silver could come under further pressure, and the triple?levered ETC will feel the full force of each downward lurch. The metal’s dual role as both a safe haven and an industrial raw material ensures the story remains deeply split.