Nataly Kambur
⬤ The iShares Silver Trust is experiencing a massive exodus of capital despite silver's strong price performance. SLV has now recorded seven consecutive days of redemptions totaling roughly $2.4 billion, marking the second-largest ETF outflow during this period. What makes this particularly striking is that silver prices have been climbing sharply at the start of the year, creating an unusual gap between price momentum and fund flows.
⬤ Recent data shows SLV's net asset value climbing steadily from early January lows, with readings near 107.35 and last price around 105.57—a gain of approximately 64 percent year to date. Yet despite this impressive rally, the fund has seen persistent negative flows, including several large daily outflows and one particularly heavy day near negative $766 million. Capital keeps leaving the fund even as prices push higher.
⬤ The disconnect appears driven by exceptionally strong physical silver demand, particularly from China. Traders are pulling metal directly from SLV's holdings to satisfy this appetite, and that drain is happening faster than new ETF purchases can offset it. Physical market demand is essentially absorbing supply quicker than fear-of-missing-out buyers can replace it through ETF inflows, leading to ongoing redemptions despite rising prices.
⬤ This pattern carries real implications for the precious metals market. Sustained SLV outflows alongside climbing prices suggest silver's price action is increasingly driven by physical market tightness rather than traditional ETF flows. If physical demand stays this strong, it could impact inventory levels, liquidity, and short-term volatility across silver products. The SLV flow data offers a clear window into how demand pressures are reshaping the silver market early this year.
Nataly Kambur
