Silver Surpasses Gold Amidst Tight Supply and Rising Demand for EVs, Solar, and Electronics—Is It a Superior Investment?

Silver's Price Surge: In 2025, silver has outperformed gold, doubling in price year-to-date due to high demand from electronics, electric vehicles, and solar industries, while gold has increased by 60%.

Supply Shortages: Silver inventories are critically low, and supply is unable to meet demand, leading to potential shortages across various sectors, unlike gold which has central bank support.

Investor Behavior: Physical silver-backed ETFs have seen significant inflows, indicating strong investor interest in silver as a hedge against supply constraints, while the options market shows increased demand for bullish bets.

Market Dynamics: The lack of a central bank equivalent for silver creates a more volatile trading environment, with rising costs impacting profitability for companies reliant on silver, particularly in the jewelry sector.