It’s been a year since the debut of the Sprott Silver Miners & Physical Silver ETF (SLVR) and the fund has grown, with over $730 million in assets and about $450 million inflows in 2025, the index fund accomplished this feat in a year of fever-pitched demand for active.
The fund may continue shining in 2026. Silver’s dual usage as a precious and industrial metal likely makes it more prone to market or economic tailwinds. As a precious metal, it’s more affordable than gold, which appeals to the cost-conscious investor.
SLVR tracks the performance of the Nasdaq Sprott Silver Miner Index. The index tracks the performance of the silver miners industry, including silver producers, developers, and explorers, as well as physical silver itself. This exposes the fund to more upside potential in both physical silver as well as miners.
Demand Drivers Intact
Demand drivers that pushed silver higher in 2025 also carry over into the new year. One of them is the “debasement trade,” which could persist in 2026. More investors have been fleeing from fiat currencies and into hard assets like silver while ongoing market uncertainty further supports silver’s case as a safe haven asset.
Additional rate cuts could also spur silver prices to more record highs in the new year. While the U.S. Federal Reserve only mentioned one rate cut to come in 2026, market experts are forecasting more. That’s especially the case if a new Fed chair, more open to aggressive cuts, arrives.
Regardless of any short-term price movements, these fundamental demand drivers for silver could serve as ongoing price catalysts. This makes the prospect for silver investment plausible for long-term buy-and-hold investors who have an opportunity to pick up silver exposure during price dips.
“Silver’s bullish case is anchored in persistent supply deficits, shrinking inventories, tariff-driven market dislocations and robust industrial and investment demand,” said Sprott market strategist Paul Wong in a Sprott Precious Metals Report. “Macro tailwinds and technical conditions further reinforce the potential for sharp price moves.”
Critically Speaking
Another long-term catalyst for bullish silver prices is its usage in electrical applications. As already mentioned, this gives silver the dual benefit of serving as a precious metal as well as an industrial metal.
With heavy interest by big tech firms in bolstering their AI platforms, electricity consumption is expected to rise following the buildout of AI infrastructures. Silver will be a crucial component due to its conductivity properties, but its usage extends beyond AI hardware. As an industrial metal, it has uses in a wide variety of applications, including alternative energy technology — another persistent trend as electricity demand increases.
“Silver mine production and recycling have remained essentially flat for over a decade while industrial demand, especially from solar panels and electronics, continues to surge,” Wong said further.
Targeting Silver Specifically
Those investors looking to specifically target physical silver exposure might look at a pure-play option like the Sprott Physical Silver Trust (PSLV). The fund invests in unencumbered and fully allocated London Good Delivery silver bars, while giving shareholders the option to redeem their shares for physical bullion (subject to certain minimum conditions).
Another investment option is the Sprott Active Gold & Silver Miners ETF (GBUG), which gives exposure to miners in both gold as well as silver. This may allow for greater diversification and exposure to upside potential in both metals indirectly through miners.
For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Content Hub.
The Sprott Physical Silver Trust is generally exposed to multiple risks that have been both identified and described in the Prospectus. Please refer to the Prospectus for a description of these risks. This material must be preceded or accompanied by a prospectus. For an additional copy of the prospectus please visit https://sprott.com/investment-strategies/physical-bullion-trusts/silver/.
An investor should consider the investment objectives, risks, charges, and expenses carefully before investing. To obtain a Prospectus, which contains this and other information, contact your financial professional or call 888.622.1813. Read the Prospectus carefully before investing, which can also be found by clicking one of the links below.
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, SGDJ, SLVR, GBUG, METL
Physical Bullion Funds:PHYS, PSLV, CEF, and SPPP.
Gold and precious metals are referred to with terms of art like store of value, safe haven and safe asset. These terms should not be construed to guarantee any form of investment safety. While “safe” assets like gold, Treasuries, money market funds and cash generally do not carry a high risk of loss relative to other asset classes, any asset may lose value, which may involve the complete loss of invested principal.
