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Silver recently soared to its highest level in more than a decade, topping $35.90 per ounce — a level not seen since February 2012. The rally came amid a weakening U.S. dollar, heightened global trade uncertainty, and rising interest in precious metals as geopolitical and economic hedges. Silver has risen 24% so far this year.

Silver miners also spiked, as they are the biggest beneficiaries of a surge in silver prices. These act as leveraged plays on underlying metal prices and thus tend to experience more gains than their bullion cousins in a rising metal market.

Investors seeking to tap the recent rally could consider ETFs like iShares Silver Trust (SLV - Free Report), abrdn Physical Silver Shares ETF (SIVR - Free Report), Global X Silver Miners ETF (SIL - Free Report), ETFMG Prime Junior Silver ETF (SILJ - Free Report), and iShares MSCI Global Silver and Metals Miners ETF (SLVP - Free Report).

Factors Driving the Silver Rally

Here is a quick look at the various factors behind the recent silver rally.

A Technically Driven Breakout Meets Macro Catalysts

The silver surge mirrored the recent rally in gold, as both precious metals have been benefiting from investor anxiety surrounding President Trump's evolving tariff agenda. Silver futures for July delivery jumped more than 4% on Thursday, riding a wave of momentum that analysts said has been building for months.

“The breakout has been brewing for a while,” said Maria Smirnova, CIO at Sprott Asset Management. “Silver had attempted to breach the $35 threshold several times recently. This move is technically significant and could ignite a wave of physical buying that accelerates the rally.”

Supply Deficit

A major tailwind for silver has been the sustained supply deficit in recent years. The silver market seems to be heading for the fifth year of deficit, driven largely by surging industrial demand, particularly from the green energy and electronics sectors. Per the Silver Institute industry association, total silver demand is expected to reach 1.148 billion ounces this year, while supply is forecast at just 1.030 billion ounces.

Store of Wealth

Silver is often used to preserve wealth during times of financial and political uncertainty, and it usually does well when other asset classes struggle. Geopolitical tensions and ongoing uncertainty over the Trump administration’s trade policies have enhanced the metal’s attractiveness among investors.

Industrial Demand Strength

Silver has been 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 likely 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.

Gold-Silver Ratio Drop

The gold-to-silver ratio tightened sharply from around 105 in April to approximately 94 by early June, indicating silver has been outperforming gold. Since gold has also seen strong inflows (up 29% year-to-date), this shift added fuel to silver ETF flows.

Dollar Decline Added Fuel

Another crucial factor behind silver’s rally has been the weakness in the U.S. dollar. The dollar index has declined steadily over recent weeks, driven by growing concerns over America’s fiscal trajectory. President Trump’s newly passed tax bill, which raises the debt ceiling by $4 trillion, has added to investor anxiety over ballooning federal deficits. While the greenback loses value, dollar-denominated assets like silver become more attractive to foreign buyers.

Presented below is a brief overview of the previously-mentioned ETFs.

iShares Silver Trust (SLV - Free Report)  

iShares Silver Trust offers exposure to the day-to-day movement of the price of silver bullion. It is an ultra-popular silver ETF, with an AUM of $16 billion and a heavy volume of 15 million shares a day. It charges 50 bps in fees per year from investors.

abrdn Physical Silver Shares ETF (SIVR - Free Report)  

abrdn Physical Silver Shares ETF tracks the performance of the price of silver less the Trust expenses. It has an AUM of $1.8 billion, and it trades in a good volume of around 628,000 shares per day on average. The ETF has an expense ratio of 0.30%.

Global X Silver Miners ETF (SIL - Free Report)  

Global X Silver Miners ETF provides investors access to a broad range of silver mining companies by tracking the Solactive Global Silver Miners Total Return Index. It holds 40 stocks in its basket, with a double-digit concentration on the top two firms. The ETF has managed assets worth $1.7 billion, and it trades in a good volume of about 1.4 million shares a day. It charges 65 bps in annual fees.

ETFMG Prime Junior Silver ETF (SILJ - Free Report)

ETFMG Prime Junior Silver ETF is the first ETF to target small-cap silver miners. It provides direct exposure to the small-cap silver mining exploration and production industry by tracking the Prime Junior Silver Miners & Explorers Index.

The ETF holds 56 stocks in its basket, with Canadian firms taking the lion’s share at 57%, while the United States takes 18% exposure. It has managed assets worth $1.3 billion, and it trades in a good volume of nearly 3 million shares a day. It charges 69 bps in annual fees.

iShares MSCI Global Silver and Metals Miners ETF (SLVP - Free Report)

iShares MSCI Global Silver and Metals Miners ETF follows the MSCI ACWI Select Silver Miners Investable Market Index, providing investors exposure to companies that derive the majority of their revenues from silver exploration or metals mining.

It holds 30 stocks in its basket, with Canadian firms making up the lion’s share at 69.1%, while the United States and Mexico round off the next top spots. The ETF has AUM of $285.7 million and an average daily volume of about 189,000 shares. It charges 39 bps in annual fees.

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