Spring’s market volatility may have turned the spotlight on gold, but this summer could see silver shining brighter than its more expensive relative.
Robert Kiyosaki, famed author of “Rich Dad, Poor Dad,” certainly likes the white metal’s prospects this summer. Price-wise, it’s likely more accessible than gold to the majority of investors. Silver prices remain under $40 per ounce, while gold is over $3,000 per ounce and climbing.
Factors Forming in Silver’s Favor
Likely, there is a confluence of factors working in favor of the metal. These were outlined by the derivatives market firm CME Group.
The economic forces of supply and demand are already working in the precious metal’s favor. Scarce supply is being met by unwavering demand, according to Keith Neumeyer, CEO of First Majestic Silver. As such, the metal’s price history has seen a relatively steady climb over the years.
Additionally, more futures contracts are being traded, according to data from the CME Group. To stymie the volatility of prices as of late, traders may use options as a hedge. Because of heavier trading volumes, the CME Group has seen contracts reach record highs this year.
Data as of 13 March 2025.
From a fundamental perspective, growth is skewing in the metal’s favor. The global electrification movement could provide plenty of tailwinds for demand, which could prop up its price even further.
“Silver is gaining traction, helped by robust industrial consumption, a large supply deficit and lingering global uncertainty,” the CME Group summarized. “Amid this backdrop, experts see more upside for the precious metal used to power the energy transition and diverse industrial applications.”
A Silver Pure Play
Those specifically seeking a pure play on the white metal to augment a portfolio could consider using the Sprott Physical Silver Trust (PSLV). With silver, investors get the characteristics of precious metals that serve well during times of volatility and an industrial metal that tracks the broader economy.
The fund invests in unencumbered and fully allocated London good delivery silver bars. Additionally, shareholders can redeem their shares for physical bullion anywhere in the world (subject to certain minimum conditions) if they want a more tangible investment experience.
Adding Mining Exposure
Getting exposure to silver miners offers investors an indirect play on miners. Investors might opt for this backdoor exposure. But they might also want the pure play of the metal via PSLV. This is where the Sprott Silver Miners & Physical Silver ETF (SLVR) comes in.
SLVR tracks the performance of the Nasdaq Sprott Silver Miner Index. As such, SLVR includes exposure to those who support the industry: producers, developers, and explorers. As mentioned, it includes exposure to physical silver, offering a broad, diversified option for investors.
*Futures contracts (options) are financial tools that help investors and companies manage risk when prices of metals like gold or silver swing up or down. An option on a futures contract gives you the right, but not the obligation, to buy or sell a futures contract at a set price by a specific date.
The Nasdaq Sprott Silver Miners Index is designed to track the performance of a selection of securities in the silver industry, including silver producers, non-producers, and physical silver.
For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Content Hub.
An investor should consider the investment objectives, risks, charges, and expenses of each fund carefully before investing. To obtain a fund’s Prospectus, which contains this and other information, contact your financial professional, call 1.888.622.1813 or visit SprottETFs.com. Read the Prospectus carefully before investing.
Sprott Physical Silver Trust (the “Trust”) is a closed-end fund established under the laws of the Province of Ontario in Canada. The Trust is available to U.S. investors by way of a listing on the NYSE Arca pursuant to the U.S. Securities Exchange Act of 1934. The Trust is not registered as an investment company under the U.S. Investment Company Act of 1940. The Trust is generally exposed to the multiple risks that have been identified and described in the prospectus. This material must be preceded or accompanied by the Trust’s prospectus.
Past performance is no guarantee of future results. One cannot invest directly in an index.
Funds that emphasize investments in small/mid-cap companies will generally experience greater price volatility. Diversification does not eliminate the risk of investment losses. ETFs are considered to have continuous liquidity because they allow an individual to trade throughout the day. A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses, affect the Fund’s performance.
Sprott Asset Management USA, Inc. is the Investment Adviser to the ETFs. ALPS Distributors, Inc. is the Distributor for the ETFs and is a registered broker-dealer and FINRA Member. ALPS Distributors, Inc. is not affiliated with Sprott Asset Management USA, Inc. or VettaFi.
Exchange Traded Funds (ETFs): SETM, LITP, URNM, URN, COPP, COPJ, NIKL, SGDM and SGDJ
Physical Bullion Funds: PHYS, PSLV, CEF, and SPPP
