Silver

Silver has trodden a similar but less discussed path to gold through 2025: year-to-date silver has advanced +62% trumping golds +47%. Both precious metals have advanced strongly over the last 3 years, with the silver market experiencing unprecedented pressure from both sides of the supply and surging demand. What we’re seeing isn’t just a temporary market situation but rather a structural deficit that has been building for years.

• Supply Constraints: by-product dependency from the likes of copper and gold mining, declining ore grades, and rising production costs, e.g. energy and labour.
• Demand Tailwind: increasing industrial applications, including solar panels and global electrification, and like gold investment demand from coins, bars and ETFs.

Silver is currently trading in backwardation, with Dec27 silver almost 10% more expensive than Dec26, way more than an interest rate differential. Such steep backwardations are largely regarded as bullish flags for traders and investors.

• We are bullish towards silver into 2026, and while a pullback wouldn’t surprise we can see higher prices this time next year.