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Silver Outshines Gold, AI: ETFs Power A Hot 2026 Diversification Play

2025 has been a remarkable year for precious metals, but one metal has truly stood out. Silver has surged more than 130% year-to-date, trading around $69 per ounce on Tuesday. This performance has far exceeded gold's 68%+ gain.

• iShares Silver Trust stock is challenging resistance. Why is SLV stock breaking out?

Also, for investors concerned about high valuations in booming tech sectors, this shift has brought attention back to tangible assets. These provide a safety net against market volatility and tap into growing demand trends.

Silver's rise stems not only from safe-haven buying but also from increased industrial demand, especially for solar panels, electric vehicles and advanced electronics, which all rely on silver.

Silver ETFs Taking Center Stage

For investors who want exposure without dealing with physical bullion, ETFs offer an efficient option:

iShares Silver Trust (NYSE:SLV): The largest and most liquid silver ETF, SLV gives direct exposure to silver bullion's price. As of Dec. 22, SLV held over 533 million ounces of silver with about $37 billion in net assets, reflecting the metal’s strong performance.

Inflows this year stand at $2.6 billion as of Tuesday, per data compiled by VettaFi. The expense ratio carried by the fund is 0.5%.

abrdn Physical Silver Shares ETF (NYSE:SIVR) SIVR tracks physical silver bullion and has a lower management fee of 0.3%. It has closely matched silver's performance in 2025, also up about 134% year-to-date, making it a cost-effective alternative to SLV.

The fund has amassed $1.4 billion in inflows so far this year.

Global X Silver Miners ETF (NYSE:SIL): For those seeking more leveraged exposure, SIL allows investors to tap into companies that mine silver. SIL has outperformed pure bullion funds in 2025, with gains of more than 160% due to operational leverage in rising price conditions.

So far this year, SIL pulled in around $1.3 billion.

What Fueled Silver's Historic Run

Unlike gold, which usually serves as a safe haven, silver's rise in 2025 was driven by a strong mix of macroeconomic and fundamental factors:

  • Supply issues during the fifth straight year of global deficits pushed prices higher.
  • Industrial demand has skyrocketed, with green technologies using more silver than ever.
  • ETF inflows brought new money into the market as investors sought to diversify away from stocks.
  • A dovish monetary policy and a weakening U.S. dollar provided additional support for dollar-priced metals.

These factors have made silver not only a safe bet but also a strategic option for diversifying 2026 portfolios.

What 2026 Might Hold

Analysts generally hold a positive view on silver as we head into 2026, though they expect that the rate of gains may slow after 2025's extraordinary rise. Ongoing supply shortages and steady industrial demand indicate that silver’s fundamental story remains strong, keeping ETFs relevant for both risk management and growth opportunities.

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