The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.

We use cookies to improve your experience and serve personalized ads.

By clicking Accept, you consent to our use of advertising cookies. See our Privacy Policy for details.

CommoditiesMedium•9 February 2026•

1 min read

Silver Drops 7% on Warsh Fed Chair Nomination, Strong Dollar Outlook

Silver bars stacked in a pyramid and scattered coins on an orange background with a red downward trend line and financial charts.

The iShares Silver Trust (SLV) experienced a significant nearly 7% decline in the week ending February 6. This sharp selloff was largely attributed to the nomination of Kevin Warsh for the Federal Reserve chair. Warsh's potential appointment is widely perceived to signal a policy continuity favoring a stronger US dollar. A robust dollar typically exerts downward pressure on non-yielding assets like silver, leading to investor divestment from related ETFs. Despite the ETF's decline, the physical silver market remained in backwardation, indicating persistent strong demand for immediate delivery of the precious metal. This suggests a potential disconnect between paper and physical markets, with underlying support for silver.