XAG Silver Market Analysis 2026.04.06 Today, I will briefly talk about the follow-up market trends based on the silver ETF position data and fundamentals. The structural shortage in the physical silver market has not changed due to recent price fluctuations. From 2021 until now, the cumulative shortage has reached the total production of mines worldwide for a whole year. In addition, the development cycle of new mining projects is still very long, which means that the underlying logic of tight supply is unlikely to be broken during the period from 2027 to 2030. The short-term paper price correction cannot change the long-term supply and demand pattern. We can see from the latest position report of SLV Silver ETF in Figure 3 that the short-term correction of silver is likely to continue. As of April 2, 2026, the current total holdings of silver ETFs are 15264.49 tons, showing an overall trend of reducing holdings in the near future, indicating that short-term funds have profit taking or risk aversion. From a technical perspective, silver is currently undergoing an adjustment aimed at the 17.5-121.5 price range. After reaching the adjustment endpoint in 2026 and 2027, there will be a similar level of increase that will break through 121.5. (Silver weekly chart shown in Figure 1) In the short term, silver is currently running a rebound against the decline of 96.3-60.8. The rebound has already ended or will at most reach the last high point, followed by a wave of decline at the same level as 96.3-60.8. Only then will there be a chance to run a rebound at the same level against the first major decline of 121.5. In summary, short-term adjustments will continue, but in the long run, there is still hope to challenge new highs after the adjustment is over, as structural shortages have never changed. New mines often have an eight year production cycle, and inventory has been depleted for many years. The logic of tight supply-demand balance still holds true from 2027 to 2030. The bull market of silver will not end with just one pullback, but what matters is how you navigate through the current pullback. The above analysis is for reference only and does not constitute investment advice. Also, if you have any insights, you can chat together in the comment section.