Silver Prices Plunge Amid Market Turmoil and Geopolitical Tensions
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Should l Buy HL?
Source: CNBC
- Silver Price Volatility: In March, silver prices fell by 19.7%, marking the largest monthly decline since September 2011, as investors took profits amid the U.S.-Iran conflict, leading to heightened market anxiety and impacting investor confidence.
- Market Reaction: The closure of the Strait of Hormuz by Iran caused a spike in global oil prices, putting pressure on other supply chains and prompting indiscriminate selling across asset classes, with silver and gold being utilized as 'cash stations' during this turmoil.
- Potential for Rebound: Despite short-term pressures on silver prices, analysts believe that the exit of 'weak hands' from the market may lead to a rebound, with KKM's Kilburg projecting prices could rise to $90 to $100 per ounce if U.S.-Iran relations improve.
- Growing Industrial Demand: Despite market fluctuations, the demand for silver in industrial applications continues to grow, while its supply remains relatively scarce; Boockvar noted that the difficulty in mining silver could drive prices higher in the future.
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Analyst Views on HL
Wall Street analysts forecast HL stock price to rise
7 Analyst Rating
2 Buy
4 Hold
1 Sell
Hold
Current: 17.220
Low
16.00
Averages
23.93
High
36.50
Current: 17.220
Low
16.00
Averages
23.93
High
36.50
About HL
Hecla Mining Company is a silver producer in the United States and Canada. The Company discovers, acquires and develops mines and other mineral interests and produces and markets concentrates containing silver, gold, lead, zinc and copper; carbon material containing silver and gold, and unrefined dore containing silver and gold. The Company's segments include Greens Creek, Lucky Friday, Keno Hill and Casa Berardi. The Greens Creek operation is located on Admiralty Island, near Juneau, Alaska. The Greens Creek ore body contains silver, zinc, gold and lead. The Lucky Friday mine is a deep underground silver, lead, and zinc mine located in the Coeur d’Alene Mining District in northern Idaho. The Casa Berardi mine is an underground/open-pit gold mine located in western Quebec. It owns 100% of the Keno Hill Silver Project, which is located within the Keno Hill Silver District in Canada’s Yukon Territory. The Company also owns a number of exploration and pre-development projects.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Gulf War Triggers Sharp Sell-off in Gold and Silver
- Investor Shock: The outbreak of the Gulf War has led to a sharp sell-off in gold and silver, which are typically seen as safe-haven assets; this recent decline reflects market panic over the conflict, shaking investor confidence.
- Significant Demand Changes: According to the IMF, investors held 2.8% of their assets in gold in 2025, double the figure from a decade ago, while investment demand for gold increased by nearly 990 tonnes compared to 2024, indicating strong long-term demand despite short-term price volatility.
- Stable Industrial Demand: Industrial demand for silver accounts for 59% of total demand and remained stable in 2025 compared to 2024, with expectations that increased usage in new data centers will further drive silver demand, highlighting its importance in emerging technologies.
- Central Bank Buying Potential: Although central bank demand for gold declined in 2025, this may align with banks reaching their target holdings due to price increases; any significant drop in gold prices could trigger increased buying from central banks, reflecting ongoing concerns over U.S. debt levels and geopolitical tensions.
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Gold and Silver Decline Short-Term but Long-Term Outlook Remains Positive
- Safe-Haven Performance Decline: Despite being regarded as safe-haven assets, both gold and silver have seen significant declines following the onset of the Persian Gulf war, reflecting a market reaction to conflict that has undermined investor confidence in these traditional safe assets.
- Investment Demand Growth: According to the World Gold Council, investment demand for gold increased by nearly 990 tonnes in 2025 compared to 2024, while silver saw an increase of 13.5 million ounces, indicating that despite short-term price volatility, long-term demand remains robust, particularly supported by central banks and industrial sectors.
- Rising Central Bank Holdings: The International Monetary Fund reports that the share of gold in global official reserves has risen from 6% during the 2008 financial crisis to nearly 13% by the end of 2024, highlighting growing concerns about counterparty risk associated with U.S. Treasuries, which is driving long-term demand for gold.
- Future Potential Emergence: Although marginal demand from central banks declined in 2025, this may align with banks reaching their target gold holdings, suggesting that any significant price drop could trigger increased central bank buying, especially given the ongoing concerns over U.S. debt levels and geopolitical tensions.
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Silver Prices Plunge Amid Market Turmoil and Geopolitical Tensions
- Silver Price Volatility: In March, silver prices fell by 19.7%, marking the largest monthly decline since September 2011, as investors took profits amid the U.S.-Iran conflict, leading to heightened market anxiety and impacting investor confidence.
- Market Reaction: The closure of the Strait of Hormuz by Iran caused a spike in global oil prices, putting pressure on other supply chains and prompting indiscriminate selling across asset classes, with silver and gold being utilized as 'cash stations' during this turmoil.
- Potential for Rebound: Despite short-term pressures on silver prices, analysts believe that the exit of 'weak hands' from the market may lead to a rebound, with KKM's Kilburg projecting prices could rise to $90 to $100 per ounce if U.S.-Iran relations improve.
- Growing Industrial Demand: Despite market fluctuations, the demand for silver in industrial applications continues to grow, while its supply remains relatively scarce; Boockvar noted that the difficulty in mining silver could drive prices higher in the future.
See More
Hecla Mining Shares Surge 7% Amid Rising Silver Prices
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- Market Correlation: The rise in silver prices is closely tied to equity market performance, particularly following President Trump's comments hinting at a potential end to attacks on Iran, although this diverges from traditional investor expectations for silver and gold as safe-haven assets.
- Demand Outlook: The primary demand for silver comes from the industrial sector, with potential marginal demand driven by the growing use of silver in AI data centers, providing potential support for Hecla Mining's long-term growth.
- Strategic Shift: Hecla Mining's management plans to ramp up investment in silver assets by 2026, selling off some gold assets to focus resources, demonstrating the company's commitment to the silver market and confidence in future growth.
See More
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- Silver Price Surge: Silver prices rose today, leading to a 7% increase in Hecla Mining Co (NYSE: HL) shares at 1 p.m., reflecting growing market demand, particularly due to its applications in AI data centers.
- Market Correlation Shift: Although silver is typically viewed as a non-correlated asset, its current price movement is linked to equity market trends, especially following President Trump's hints at potentially ending attacks on Iran, prompting caution among investors.
- Future Demand Outlook: With increasing demand for silver in AI data centers, Hecla Mining plans to ramp up investments in silver assets by 2026 while divesting some gold assets, aiming to adapt to market changes and enhance its competitive edge.
- Investment Advisory: Despite the positive stock performance of Hecla Mining, it was not included in the Motley Fool Stock Advisor's current list of top investment stocks, suggesting that investors should carefully evaluate market trends and potential risks before making purchases.
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Gulf War Triggers Sharp Sell-off in Gold and Silver
- Investor Shock: The outbreak of the Gulf War has led to a sharp sell-off in gold and silver, which are typically seen as safe-haven assets; this recent decline reflects market panic over the conflict, shaking investor confidence.
- Significant Demand Changes: According to the IMF, investors held 2.8% of their assets in gold in 2025, double the figure from a decade ago, while investment demand for gold increased by nearly 990 tonnes compared to 2024, indicating strong long-term demand despite short-term price volatility.
- Stable Industrial Demand: Industrial demand for silver accounts for 59% of total demand and remained stable in 2025 compared to 2024, with expectations that increased usage in new data centers will further drive silver demand, highlighting its importance in emerging technologies.
- Central Bank Buying Potential: Although central bank demand for gold declined in 2025, this may align with banks reaching their target holdings due to price increases; any significant drop in gold prices could trigger increased buying from central banks, reflecting ongoing concerns over U.S. debt levels and geopolitical tensions.
See More
Gold and Silver Decline Short-Term but Long-Term Outlook Remains Positive
- Safe-Haven Performance Decline: Despite being regarded as safe-haven assets, both gold and silver have seen significant declines following the onset of the Persian Gulf war, reflecting a market reaction to conflict that has undermined investor confidence in these traditional safe assets.
- Investment Demand Growth: According to the World Gold Council, investment demand for gold increased by nearly 990 tonnes in 2025 compared to 2024, while silver saw an increase of 13.5 million ounces, indicating that despite short-term price volatility, long-term demand remains robust, particularly supported by central banks and industrial sectors.
- Rising Central Bank Holdings: The International Monetary Fund reports that the share of gold in global official reserves has risen from 6% during the 2008 financial crisis to nearly 13% by the end of 2024, highlighting growing concerns about counterparty risk associated with U.S. Treasuries, which is driving long-term demand for gold.
- Future Potential Emergence: Although marginal demand from central banks declined in 2025, this may align with banks reaching their target gold holdings, suggesting that any significant price drop could trigger increased central bank buying, especially given the ongoing concerns over U.S. debt levels and geopolitical tensions.
See More
Silver Prices Plunge Amid Market Turmoil and Geopolitical Tensions
- Silver Price Volatility: In March, silver prices fell by 19.7%, marking the largest monthly decline since September 2011, as investors took profits amid the U.S.-Iran conflict, leading to heightened market anxiety and impacting investor confidence.
- Market Reaction: The closure of the Strait of Hormuz by Iran caused a spike in global oil prices, putting pressure on other supply chains and prompting indiscriminate selling across asset classes, with silver and gold being utilized as 'cash stations' during this turmoil.
- Potential for Rebound: Despite short-term pressures on silver prices, analysts believe that the exit of 'weak hands' from the market may lead to a rebound, with KKM's Kilburg projecting prices could rise to $90 to $100 per ounce if U.S.-Iran relations improve.
- Growing Industrial Demand: Despite market fluctuations, the demand for silver in industrial applications continues to grow, while its supply remains relatively scarce; Boockvar noted that the difficulty in mining silver could drive prices higher in the future.
See More
Hecla Mining Shares Surge 7% Amid Rising Silver Prices
- Stock Surge: Hecla Mining (HL) shares rose 7% to $18.59 this afternoon, reflecting a positive market response to rising silver prices, indicating increased investor confidence in the company.
- Market Correlation: The rise in silver prices is closely tied to equity market performance, particularly following President Trump's comments hinting at a potential end to attacks on Iran, although this diverges from traditional investor expectations for silver and gold as safe-haven assets.
- Demand Outlook: The primary demand for silver comes from the industrial sector, with potential marginal demand driven by the growing use of silver in AI data centers, providing potential support for Hecla Mining's long-term growth.
- Strategic Shift: Hecla Mining's management plans to ramp up investment in silver assets by 2026, selling off some gold assets to focus resources, demonstrating the company's commitment to the silver market and confidence in future growth.
See More
Silver Price Surge Boosts Hecla Mining Shares
- Silver Price Surge: Silver prices rose today, leading to a 7% increase in Hecla Mining Co (NYSE: HL) shares at 1 p.m., reflecting growing market demand, particularly due to its applications in AI data centers.
- Market Correlation Shift: Although silver is typically viewed as a non-correlated asset, its current price movement is linked to equity market trends, especially following President Trump's hints at potentially ending attacks on Iran, prompting caution among investors.
- Future Demand Outlook: With increasing demand for silver in AI data centers, Hecla Mining plans to ramp up investments in silver assets by 2026 while divesting some gold assets, aiming to adapt to market changes and enhance its competitive edge.
- Investment Advisory: Despite the positive stock performance of Hecla Mining, it was not included in the Motley Fool Stock Advisor's current list of top investment stocks, suggesting that investors should carefully evaluate market trends and potential risks before making purchases.
See More
Small-Cap ETF Defies Market Downturn Amid Geopolitical Tensions
- Market Performance Comparison: As of 2026, the S&P 500, Nasdaq-100, and Dow Jones Industrial Average have each declined over 5%, while the Russell 2000 small-cap index remains flat, demonstrating its relative resilience amid geopolitical tensions, potentially attracting risk-averse investors.
- ETF Performance Potential: The Vanguard Russell 2000 ETF (NASDAQ: VTWO) is expected to continue outperforming major indices in 2026 by tracking the small-cap index and holding similar stocks and weightings, benefiting from its diversified sector exposure that reduces volatility.
- Small-Cap Returns: Bloom Energy's stock has surged by 500% over the past year, while Credo Technology's stock has increased by over 700% in the last five years, highlighting the strong performance of small-cap stocks driven by surging demand in specific sectors, which may draw more investor attention.
- Policy Support Impact: The Trump administration's tariff policies and regulatory rollbacks benefit domestic companies, further enhancing the Russell 2000 index's performance; although large firms excel in rapid growth, small businesses exhibit stronger resilience in the current environment.
See More
