Silver suffered a brutal session on June 25, falling $4.30 to close at $57.72/oz on COMEX. The 6.9% decline was more than double gold's 2.7% drop, a pattern consistent with silver's higher beta during macro-driven selloffs. Silver typically moves 1.5x to 2.5x the daily range of gold during volatility events.
The gold/silver ratio jumped to 69.6, up from 66.6 at Tuesday's close. A rising ratio indicates silver underperformance relative to gold, which historically signals either a macro risk-off event or industrial demand weakness. In this case, it was both: risk-off sentiment hit precious metals broadly, while growing concerns about global manufacturing activity added specific pressure on silver.
Industrial demand concerns are the primary differentiator between silver and gold in this selloff. Silver has significant industrial applications — approximately 55% of annual demand — in photovoltaics, electronics, brazing alloys, and ethylene oxide catalysts. Leading indicators for global manufacturing, including the US ISM Manufacturing PMI (expected 49.3 for June), have been contracting.
Physical silver ETF holdings tracked by Bloomberg declined 315 tonnes last week, the largest weekly outflow since February. The iShares Silver Trust (SLV) saw net redemptions of 2.1 million ounces. This liquidation pressure compounds the futures-driven selloff, creating a negative feedback loop between paper and physical prices.
On the Shanghai Futures Exchange, silver fell 5.3% to 7,480 CNY/kg. The SHFE premium over COMEX narrowed to $0.15/oz, indicating reduced Chinese physical buying interest. Silver imports by China, the world's largest consumer of silver for industrial use, were down 8% month-over-month in May according to customs data.
Despite the sharp selloff, the fundamental thesis for silver remains intact. Global solar photovoltaic installations are projected to reach 650 GW in 2026, up 22% year-over-year. Silver demand from the solar sector alone is estimated at 265 Moz annually, accounting for roughly 18% of total demand. This structural growth driver persists regardless of near-term price volatility.
Silver's 2x beta to gold means this is the sharper correction of the two, but also the better buying opportunity if the macro picture stabilizes. The $55-$57 zone has acted as strong support since March. If you consume silver for industrial applications, spot purchases below $56 look attractive. For hedgers, silver volatility (SI VIX equivalent at 32) makes options strategies more expensive — consider collars instead of outright puts.