The iShares Silver Trust (SLV), the largest silver-backed ETF in the U.S., has experienced notable shifts in investor interest over the past quarter, reflecting broader macroeconomic concerns. As markets weigh rising interest rates, inflation expectations, and currency fluctuations, silver’s dual role as an industrial commodity and store of value is drawing renewed attention from institutional and retail investors alike. For the Israeli investor base, SLV provides a direct, accessible route to global silver exposure without direct bullion purchase.

SLV Performance and Market Drivers

SLV’s holdings currently stand at approximately 1.1 billion ounces of silver, reflecting moderate inflows in January 2026. The ETF’s net asset value has tracked spot silver prices closely, which have risen roughly 3.2% over the last month, partly due to softening U.S. dollar strength and a slight easing in real Treasury yields. Market participants note that SLV’s liquidity, with average daily trading volumes above 15 million shares, provides a reliable gauge of investor sentiment for precious metals. These dynamics highlight how macroeconomic indicators, including inflation readings and Fed policy, continue to influence silver-linked ETFs.

Macro Context and Investor Considerations

Globally, silver demand remains supported by industrial use, particularly in renewable energy, electronics, and electric vehicles, while investment demand reacts sensitively to safe-haven flows. U.S. CPI data and Treasury yields have historically correlated inversely with silver ETF inflows; as yields rise, non-yielding assets like silver may experience temporary headwinds. For investors in Israel, currency effects against the shekel add another layer of consideration, emphasizing the importance of monitoring exchange rate movements alongside global macro trends.

Strategic Implications and Outlook

SLV continues to serve as both a tactical and strategic vehicle for portfolio diversification. Professional investors are evaluating positioning in SLV as a hedge against equity volatility and as a partial inflation safeguard, while industrial exposure remains an undercurrent for potential medium-term demand. With global central banks maintaining a cautious tone on interest rates, silver ETFs like SLV may experience renewed inflows if equity markets show elevated volatility or inflation expectations accelerate. Investors should monitor SLV’s assets under management, trading volumes, and spot price correlation as leading indicators of market sentiment.

Looking ahead, SLV’s trajectory will be influenced by evolving monetary policy, industrial demand, and geopolitical developments affecting commodity markets. For Israeli and global investors, maintaining awareness of these factors, alongside careful monitoring of currency exposure and ETF liquidity, will be critical for assessing SLV’s role in diversified portfolios.