Silver’s 3x ETC Trades Sharper After Split as a Thinning Supply Gap Meets Cooling Factory Use

The WisdomTree Silver 3x Daily Leveraged ETC began trading in a new post?split form on 11 May, and the very next day the underlying metal hit a two?month high. Silver touched $87.88 an ounce on 13 May, up 1.54% on the day, while the leveraged product itself surged more than 16%. Yet beneath the surface, the rally is pulling in two directions at once: a persistent structural deficit continues to drain physical inventories, but the industrial appetite that has fuelled much of the recent demand is showing signs of fatigue.

The immediate catalyst came from Washington and Beijing. On 10–11 May the two countries announced a 90?day tariff truce, with the US slashing its levy on Chinese goods from 145% to 30% and China cutting its rate on American products from 125% to 10%. Because roughly 60% of annual silver consumption flows into industrial supply chains – photovoltaics, electric vehicles, semiconductors and data?centre hardware – traders read the détente as a clear positive for the white metal. Within a week the gold?silver ratio tumbled from 62 to below 55, confirming that silver was outpacing gold by a wide margin.

HSBC, which had already lifted its price forecasts, now expects silver to average $75 an ounce in 2026, up from a previous projection of $68.25. For 2027 the bank sees an average of $68, compared with an earlier estimate of $57. But the story is not uniformly bullish. HSBC also warns that the annual supply deficit is narrowing sharply: this year’s shortfall is forecast at 73 million ounces, down from 143 million in the prior year, and by 2027 the gap could shrink to just 25 million ounces. The driver is a two?sided adjustment – mine output and recycling are rising, while high prices are pushing manufacturers to substitute or economise on silver use. Industrial demand slipped to 657 million ounces in 2025 from a record 679 million, and HSBC expects a further drop to 642 million ounces in 2026.

Should investors sell immediately? Or is it worth buying WisdomTree Silver 3x Daily Leveraged?

WisdomTree’s decision to execute a 10?for?1 split on 11 May – announced on 23 April – cuts the unit price and improves liquidity on the London, Milan and Xetra exchanges without changing the product’s mechanics. The swap fee, calculated daily by BNP Paribas, will also come down on 1 September, dropping from 0.01248% to 0.00692%. Although the total expense ratio stays at 0.99%, the lower swap component can be meaningful for traders who hold the daily?reset leveraged product for more than a few sessions. The swap reduction was signalled in early May and is now scheduled to take effect at the start of September.

The Silver Institute is projecting a sixth consecutive annual deficit in 2026, this time of 67 million ounces, while TD Securities describes the latest price move as news?driven and highly reversible. Technical traders note that the spot market has consolidated above the $85.34 support level and is now testing resistance at $88.70. A break higher could accelerate, especially given the persistent premium Asian buyers are paying over western paper exchanges. The solar sector, which now accounts for nearly 20% of global silver consumption, along with the build?out of AI data centres and 5G networks, continues to provide a powerful tailwind.

The result is a leveraged product that sits squarely at the intersection of improving cost efficiency and a market whose direction depends heavily on policy and the industrial cycle. The split has made the ETC more accessible, the upcoming swap cut will lower the drag of daily rebalancing, and the long?term deficit narrative is intact – yet the very demand that created the shortage is beginning to ease. For holders of the triple?leveraged ETC, the path forward is unlikely to be a straight line.

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WisdomTree Silver 3x Daily Leveraged Stock: New Analysis - 15 May

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