Silver prices fell 2.03% to close at $64.91/oz on Friday, testing the critical $65 support level that has held since early May. The metal has now declined 8.2% from the June 17 high of $70.70, underperforming gold on a relative basis.
The weakness is driven by a dual headwind: the precious metals sell-off (tracking gold's decline) plus growing concerns about industrial demand. Silver's industrial applications — electronics, photovoltaics, brazing alloys, and batteries — account for roughly 55% of annual consumption.
The global manufacturing PMI reading for June softened to 50.2 from 50.8 in May, hovering just above the expansion threshold. The electronics sub-index, a key silver demand proxy, fell to 49.8, indicating contraction. Factory gate orders in China's electronics sector slowed for the second consecutive month.
CFTC data shows managed money net long positions in silver fell 15% to 28,000 contracts in the week ending June 16, the lowest since April. The ratio of long to short positions has narrowed from 4.5:1 to 2.8:1 over the past three weeks.
Silver at $64.91 is approaching a potential buying zone for industrial consumers. The $62-$65 range has been a reliable support level since March 2026. For electronics and solar manufacturers with silver procurement needs, consider forward contracts if silver tests the $63 level, as the long-term demand story (solar PV, electrification) remains intact despite near-term manufacturing softness.