Shares of U.S. silver mining companies fell in premarket trading on Tuesday as the price of silver dropped 2 percent, continuing a period of volatility for the precious metal.
Spot silver was last seen at around US$74.85 per ounce, down 2 percent from Monday’s close, while silver futures declined nearly 4 percent to US$74.70 per ounce. Gold also slipped, with spot prices down 1 percent to US$4,931 per ounce and futures falling almost 2 percent to US$4,952.
Among miners, Hecla Mining, which operates the Green Creek Mine in Alaska, lost 3 percent in premarket trading. Endeavour Silver was down 3.5 percent, First Majestic Silver fell nearly 4 percent, and Coeur Mining slid 3.4%. Other producers, including Teck Resources and Silvercorp Metals, were roughly 3 percent lower, while Wheaton Precious Metals dropped just over 2 percent.
Exchange-traded funds (ETFs) tied to silver also experienced losses. ProShares Ultra Silver fell 7 percentpremarket, while iShares Silver Trust and ABRDN physical silver dropped slightly above 3 percent, according to FactSet data.
Analysts attributed the declines to market volatility and an ongoing reassessment of precious metals amid a stronger U.S. dollar and delayed economic data. Deutsche Bank analysts noted that silver was trading $7 below its “real adjusted price in 1790,” highlighting that the metal remains historically undervalued despite recent price swings.
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Silver markets have faced significant turbulence in recent weeks. In late January, silver futures plunged 30 percent, marking their steepest one-day drop since March 1980, as investors reacted to the nomination of Kevin Warsh to lead the Federal Reserve and expectations of a stronger dollar. Gold experienced similar pressure, though both metals rebounded slightly in early February.
The volatility comes despite geopolitical tensions in the Middle East, which have historically supported demand for safe-haven assets like gold and silver. Analysts say the current pullback reflects short-term positioning by investors rather than a fundamental shift in supply or demand.
Industrial demand also plays a role in silver pricing, as the metal is widely used in electronics, solar panels, and medical applications. Shifts in manufacturing and global trade flows can quickly influence prices, particularly given silver’s dual role as both an industrial metal and an investment asset.
Market watchers are also closely monitoring major deals in the mining sector. Australian mining giant BHP recently entered a long-term silver streaming agreement with Wheaton Precious Metals, which involves an upfront payment of $4.3 billion in exchange for silver produced at BHP’s Antemina mine. Analysts say such arrangements can affect investor sentiment, as they provide capital security for miners while locking in future production at pre-agreed prices.
“The market remains sensitive to macroeconomic signals, including U.S. economic data, Federal Reserve policy expectations, and the strength of the dollar,” said James Fletcher, a precious metals strategist at New York-based commodity advisory firm Aurora Capital. “Even minor shifts in these variables can trigger significant moves in silver, given its dual industrial and investment role.”
Investors are also keeping an eye on global ETF flows, which have surged over the past year as portfolio managers increase exposure to precious metals amid inflation concerns and geopolitical risks. Large swings in ETF holdings can exacerbate price moves, contributing to the heightened volatility observed in silver markets.
Despite short-term fluctuations, some analysts remain bullish on silver’s medium-term outlook. “Structural demand from industrial applications, combined with investment demand in the form of ETFs and physical holdings, continues to provide a strong support base,” Fletcher added.
Trading activity in precious metals is expected to remain elevated through the week, as market participants await U.S. economic reports, including inflation and retail data, which could influence Federal Reserve policy and, consequently, the strength of the dollar.
