Silver Futures Price Rally Is “Gold on Steroids,” But Have We Topped?

Group 1: Silver Market Performance - Silver futures have surged over 120% year to date, outperforming gold, copper, and most cryptocurrencies, indicating a strong annual performance [1] - Spot silver has outperformed gold by more than 70% on a relative basis this quarter, with industrial demand reaching all-time highs while mine supply has remained flat for three consecutive years, highlighting a significant supply deficit [4] Group 2: Industrial Demand and Catalysts - Industrial demand for silver has been bolstered by the tripling of solar demand over the last decade and the increased silver usage in electric vehicles, which consume up to 80% more silver than traditional engines [3] - The data center capacity has expanded dramatically from approximately 1 gigawatt in 2000 to over 50 gigawatts today, contributing to the rising price of silver [3] Group 3: Supply Dynamics - Approximately 80% of silver is mined as a byproduct of other metals like copper, zinc, lead, and gold, making it challenging to increase silver output without affecting other markets [5] - Tightening stocks, strong industrial demand, and ongoing delivery issues are supporting the current rally in silver prices [5] Group 4: Macro Economic Factors - Real yields are rolling over again, and ETF inflows into silver have turned positive for the first time since 2021, indicating a favorable macro environment for silver heading into 2026 [6]