With silver trading modestly higher this year, the Global X Silvers Miners ETF (NYSEArca: SIL) is up about 5.75%.

SIL, the largest silver miner-related ETF, tries to mirror the Solactive Global Silver Miners Total Return Index, which is also comprised of global silver miners.

Moreover, unlike gold, silver sees much higher industrial demand. The precious metal enjoys heavy industrial demand that benefits from an expanding global economy. On a technical basis, silver looks appealing, as well.

“Silver is a significant material for industrial uses as well, because of its thermo-electro conductivity, ductility, malleability, and high sensitivity to light,” according to Global X research. “The metal is used extensively in a variety of faster-growing electronics segments such as solar panels, LED lighting, flexible displays, touch screens, RFID tags, cellular technology, and water purification.”

According to the Silver Institute, the largest single component of physical silver demand is industrial applications. About 55% of all silver consumed is for industrial use, including various segments like electronics, medicine, water purification, solar cells and chemical catalysts, among others.

Other Catalysts for Silver

Another bullish factor to consider with silver is that demand is once again expected to outpace supply.

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