Should You Buy the iShares Silver ETF After Its Recent 38% Crash? History Suggests It Will Do This Next.

Group 1 - Silver delivered a 144% return last year, reaching a record high of over $120 per ounce on January 30, 2026, driven by its dual role as a store of value and its industrial applications [1] - The iShares Silver Trust (NYSEMKT: SLV), an ETF that tracks silver prices, experienced a 38% decline over the past week, reflecting a sharp drop in silver prices after a strong performance over the previous year [2] - The supply of silver is currently artificially low, with miners extracting around eight times more silver than gold annually, and nearly half of silver's supply is consumed in industrial applications like electronics manufacturing [3] Group 2 - China, the world's second-largest silver exporter, implemented new restrictions on silver exports in December, which contributed to a surge in silver prices, while also aiming to protect its domestic supply chains [4] - The rally in silver prices began prior to December 2025, as investors sought precious metals to hedge against increased government spending, resulting in a U.S. budget deficit of $1.8 trillion and a national debt of $38.5 trillion [5] - Metals like silver increase in value as paper currencies depreciate, contrasting with the historical gold standard that limited currency printing to the amount of physical gold held [6]