SIL plunged more than 11% this week as silver futures experienced extreme swings, including an intraday drop of up to 16% on Thursday. The ETF’s net asset value declined by roughly 13% at one point, reflecting speculative flows and leveraged positioning in the underlying market. Trading volume surged to its highest level in six months, indicating heavy outflows from investors seeking to limit exposure to metal-price gyrations.

In a Wednesday note, Goldman Sachs highlighted options-driven trading and dealer hedging reversals as catalysts for the slide in silver prices. As a result, SIL recorded estimated outflows of $250 million over two sessions, the largest withdrawal since November. Investor stop-loss orders were increasingly triggered, pushing SIL’s premium over its net asset value into negative territory for the first time this quarter.

Recent volatility has prompted investors in SIL to reassess allocations to precious metals. With silver still up approximately 150% year over year, some fund managers are rotating capital toward less volatile sectors. Analysts project SIL’s total expense ratio remains competitive at 0.25%, but forecast further net redemptions if silver prices fail to stabilize. A period of consolidation around current levels may be necessary before inflows resume.