Industrial demand is growing exponentially for silver and that could continue in the long-term horizon. With the heavier reliance on alternative energy sources like electricity, this may only lift the prospects for silver prices.
“Global industrial demand for silver [will likely] reach record levels in 2025 and total demand is projected at around 1.2 billion ounces,” Zacks reported via Yahoo Finance. “Despite supply soaring to an 11-year high, the silver market [may see] a fifth consecutive year of deficit, which is likely to bolster prices.”
Silver Institute data corroborates the rise of industrial demand. According to the institute, demand for the precious metal this year should surpass 700 million ounces, growing 3% on a YoY basis.
Photovoltaics Installs Increasing
Mentioned earlier was the rising demand for alternative energy sources like electricity. The rise of photovoltaics installations also shows this pattern.
“Global photovoltaics installations [will likely] peak to an all-time high this year,” Zacks added. It noted that strong demand will be seen in other sectors like the automotive industry, artificial intelligence (AI), as well as investment demand overall.
With this bullish momentum, investors may want to do right by their portfolio and get silver exposure if they aren’t getting it already. On that note, Sprott has a few options to consider.
Easy Ingress to Silver Exposure
In today’s market landscape, there are myriad options available to attain silver exposure. This can be available indirectly via silver miners or via more pure-plays with silver funds. Either way, this offers easy ingress into silver investing without having to physically hold the industrial/precious metal.
The Sprott Physical Silver Trust (PSLV ) provides exposure to silver without the additional hassle of storing it. It invests in unencumbered and fully allocated London good delivery silver bars. Additionally, shareholders can redeem their shares for physical bullion anywhere in the world (subject to certain minimum conditions) if they want a more tangible investment experience.
As mentioned, miners can offer an indirect option. And in the case of silver, this is available with the Sprott Active Gold & Silver Miners ETF (GBUG ). As the fund name explicitly states, investors can also get gold exposure alongside silver, offering the duality of both precious and industrial metals.
Pliability in Precious Metals
Again, as the fund explicitly states, it has an active management component. This means portfolio managers of GBUG can adjust the holdings of the fund based on current market conditions. That allows for pliability in the precious metals space. GBUG contains holdings of companies engaged in, among others, mining, developing, exploring, and financing operations in relation to gold and silver. For those looking to maximize diversification in these metals, this is an ideal fund.
Source: Sprott- GBUG holdings as of 4/1/2025. Subject to change.
For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Channel.
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