Silver prices continue to rise, the investment opportunity behind SLV surpassing GLD

Silver funds have been attracting increasing investor attention with their strong performance in recent years. According to market data, SLV (iShares Silver Trust) has significantly outperformed GLD (SPDR Gold Trust) over the past year. This shift reflects a reassessment of precious metal allocations in the market. The upward momentum in silver prices not only demonstrates traditional safe-haven demand but also mirrors strong industrial-driven demand for silver.

Fund Performance Reflects Silver Demand Recovery

The relative performance difference between SLV and GLD stems from changes in the demand structure for silver itself. Gold primarily serves investment and safe-haven functions, while silver has dual roles as a commodity and an investment. Over the past year, the resurgence in industrial demand coupled with increased investment buying has driven the strong performance of silver funds. Market analysts believe that this divergence in fund performance indicates that silver prices are entering a new upward cycle.

Investors’ Deep Confidence in Silver Price Outlook

Investors’ optimism about silver’s future is supported by multiple fundamental factors. First, the global economic recovery has boosted manufacturing demand for silver. Second, energy transition and green industries have significantly increased demand for silver in applications such as solar panels and conductive adhesives. These factors collectively reinforce market expectations for silver prices to rise.

Industrial Applications and Energy Transition Provide Long-term Support

Unlike gold, which is mainly used for commemorative and investment purposes, the industrial application base of silver is more solid. Demand from electronics, photovoltaic industries, medical equipment, and other sectors is steadily growing. Especially under the push for global net-zero emissions, the renewable energy industry’s demand for silver is expected to further increase. This means that silver not only retains its traditional safe-haven value but also benefits from strong industrial fundamentals. From this perspective, the continued upward trend in silver prices has considerable sustainability.