Here's Why Silver ETFs Are Soaring to New Highs

Core Viewpoint - Silver has surged to its highest level since 2011, driven by investor demand as an alternative to gold and concerns over potential U.S. tariffs disrupting global metal supplies, with a year-to-date increase of 35% compared to gold's 28% gain [1] Group 1: Market Dynamics - iShares Silver Trust (SLV) and abrdn Physical Silver Shares ETF (SIVR) have spiked, while silver miner ETFs like Global X Silver Miners ETF (SIL) and ETFMG Prime Junior Silver ETF (SILJ) have reached multi-year highs, indicating leveraged gains in a rising metal market [2] - The renewed threat of trade wars, particularly the announcement of sweeping tariff measures by President Trump, has led to increased physical buying of silver, further accelerating its rally [3] - Geopolitical tensions and uncertainty regarding the Trump administration's trade policies enhance silver's attractiveness as a safe-haven asset during financial and political instability [4] Group 2: Supply and Demand Factors - The silver market is facing a sustained supply deficit for the fifth consecutive year, primarily driven by surging industrial demand from sectors like green energy and electronics [5] - Approximately 50% of silver's total demand comes from industrial applications, with the remaining 30% from jewelry, silverware, coins, and medals [6] - The global push for green energy, increasing demand in 5G technology, and a rebound in global computer shipments are expected to continue boosting silver demand, particularly in solar panels and electric vehicles [7] Group 3: Price Influencers - The spread between London spot prices and September futures in New York remains unusually wide, contributing to bullish momentum in the silver market [8] - The weakness of the U.S. dollar has made dollar-denominated assets like silver more attractive to foreign buyers, further fueling the rally [9]