Silver surged to its highest level since 2011, driven by investor demand as an alternative to gold and concerns that potential U.S. tariffs could disrupt global metal supplies. Silver is rising as both a store of value and a key industrial metal powering the clean energy transition. The grey metal climbed as much as 1.6% during Asian trading on Monday, following last week’s 4% rally. The metal is now up 35% year to date, outpacing gold’s 28% gain.
iShares Silver Trust SLV and abrdn Physical Silver Shares ETF SIVR — linked directly to the bullion prices — spiked. Silver miner ETFs — Global X Silver Miners ETF SIL, ETFMG Prime Junior Silver ETF SILJ and iShares MSCI Global Silver and Metals Miners ETF SLVP — also hit multi-year highs. Silver miners act as leveraged plays on underlying metal prices and thus tend to experience more gains than their bullion cousins in a rising metal market (read: Silver ETF (SLV) Hits New 52-Week High).
Factors Driving the Silver Rally
Trump Trade Uncertainty
Silver demand is currently benefiting from the renewed threat of trade wars. President Donald Trump announced sweeping tariff measures, including a 35% levy on Canadian imports and proposed blanket tariffs of 15%–20% on most major trading partners. He confirmed 50% duties on Brazilian goods and copper shipments. The move has sparked a surge in physical buying, accelerating the rally.
Silver is often used to preserve wealth during times of financial and political uncertainty and usually does well when other asset classes struggle. Geopolitical tensions and ongoing uncertainty over the Trump administration’s trade policies enhance the metal’s attractiveness among investors (read: What's Driving Precious Metal ETFs Rally in 2025?).
Supply Deficit
A major tailwind for silver is the sustained supply deficit in recent years. The silver market is heading for the fifth year of deficit, driven largely by surging industrial demand, particularly from the green energy and electronics sectors.
Industrial Demand Strength
Silver is benefiting from its dual role as both an investment asset and an industrial metal. The white metal is used in a wide range of industrial applications. About half of the metal’s total demand comes from industrial applications, while 30% comes from jewelry/silverware/coins and medal manufacturers.
Additionally, the global push for green energy, increasing demand in areas like 5G, a rebound in global computer shipments, the photovoltaics (PV) and automotive industries and new sources of demand for sensors used in IoT and OLED lighting will continue to boost silver demand. Silver is largely used for manufacturing solar panels and electric vehicles, and will play a key role in the shift to 5G wireless network technology.
Growing Premium
Adding to the bullish momentum, the spread between London spot prices and September futures in New York remains unusually wide. This echoes the start of the year, when tariff concerns sparked a rush of gold and silver shipments from London to the United States, lifting prices across both markets (read: ETFs Riding High on Multi-Year Record Silver Prices).
Dollar Decline Adds Fuel
Another crucial factor behind silver’s rally is the weakness in the U.S. dollar. As the greenback loses value, dollar-denominated assets like silver have become more attractive to foreign buyers.
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iShares Silver Trust (SLV): ETF Research Reports abrdn Physical Silver Shares ETF (SIVR): ETF Research Reports Global X Silver Miners ETF (SIL): ETF Research Reports Amplify Junior Silver Miners ETF (SILJ): ETF Research Reports iShares MSCI Global Silver and Metals Miners ETF (SLVP): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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