Hello,

Gold has been in the spotlight for the last three years, but in the last three months silver has stolen its shine. Since the beginning of October, its price has more than doubled, growing 119% in EUR terms and far outpacing gold’s (measly) 28% return. Price swings of this kind are usually reserved for meme coins, not one of the world’s oldest assets. So, what exactly is going on?

Silver is versatile in that it is both a monetary metal and an industrial one. Like gold, it has historically been a store of value, offering protection against inflation and economic uncertainty. But silver is also the most conductive metal on earth, making it essential for building anything electrical.

In the past year, these attributes have created a perfect storm of demand. Silver is currently sitting at the intersection of three worlds. Firstly, geopolitical strife has increased flows into safe haven assets. Secondly, looser monetary policy across the developed markets in 2025 has pushed investors towards precious metals. Thirdly, industrial demand has spiked due to the dramatic increase in AI infrastructure.

And high demand is coming at a time when supply is very low. In fact, 2025 marked the fifth consecutive year of silver mine supply deficits. Production cannot simply be increased either since around 70% of the world’s silver is produced only as a by-product of mining for other metals. So, for now, hot demand and insufficient supply have sent the price stratospheric; the market will be wondering if (and where) it might eventually land.

As always, if you wish to discuss anything in this newsletter in further detail, please do get in touch.