Shares of SIL experienced a 28% drop on Friday, marking their largest one-day decline since March 1980. SIL had surged to a 2026 high near $120 per ounce equivalent on January 29, fueled by heavy retail buying and ETF inflows. Last week’s liquidation left SIL trading near $83.45 in spot-equivalent terms, wiping out more than half of its January gains and triggering margin calls across several brokerage platforms.

Trading volumes for SIL more than doubled this week, with more silver options changing hands than Nasdaq equivalents on Thursday. According to data from BofA Securities, inflows into silver ETFs reached $4.2 billion year-to-date, while open interest in silver futures spiked by 35%. Broker reports show that new retail accounts focused on SIL rose by 42% in January, underscoring the ETF’s transformation into a meme-driven vehicle rather than a pure commodity play.

Commodity strategists highlight a stark disconnect: traditional industrial demand and mine supply models would value silver at roughly $60 per ounce, significantly below SIL’s pre-selloff levels. Manufacturers of solar panels, electronics and medical devices have not reported the surge in physical offtake reflected in ETF premiums, which in some markets reached a 20% premium over spot this month. This divergence suggests SIL’s price action has been propelled more by social media momentum than by underlying silver balance sheets.

Analysts at BofA project a potential upside target of $170 per ounce equivalent for SIL within two years, contingent on sustained retail participation and a reversal of the gold-to-silver ratio toward its historical average of 32:1. Conversely, heightened leverage and rapid unwind episodes could drive SIL back toward the $60–$70 range if sentiment weakens. Investors are cautioned to monitor ETF inflows, margin requirements and shifts in central bank policy, any of which could prompt further swings in SIL’s share price.