iShares Silver Trust (NYSEMKT: SLV)
A Direct Way to Stay Exposed to Silver After a Historic Run
Silver has been one of the most dominant assets of 2025, up an eye-catching 168% on the year and dramatically outperforming major equity indexes. What stands out to us is that this move has not been driven by a single speculative catalyst, but by a combination of sustained demand and real supply constraints that are likely to persist in 2026.
Unlike gold, silver plays a dual role as both a store of value and a critical industrial input. Roughly half of global silver supply is absorbed by electronics manufacturers each year due to the metal’s superior electrical conductivity and relatively low cost. That industrial pull has become especially important at a time when supply is tightening. China, the world’s second-largest silver exporter, announced new restrictions on silver exports beginning January 1, 2026, adding another layer of pressure to an already constrained market.
At the same time, macro conditions remain supportive. U.S. government debt climbed to a record $38.5 trillion following a $1.8 trillion deficit in fiscal 2025, and another trillion-dollar deficit is expected in fiscal 2026. That backdrop has continued to push investors toward hard assets as a hedge against currency debasement and policy uncertainty. Silver was already trending higher before China’s export announcement, which suggests the move is being driven by deeper forces than a single headline.
For investors looking for straightforward exposure without the complications of storing physical metal, the iShares Silver Trust offers a clean solution. The ETF is fully backed by physical silver held in vaults and trades like a stock, making it easy to enter or exit positions. Shares trade around $65, and while the metal’s long-term average return is far more modest than what we saw in 2025, the current setup still favors maintaining exposure rather than stepping aside entirely after the rally.
Silver is volatile, and sharp pullbacks are part of the price of admission, but the combination of industrial demand, constrained supply, and ongoing fiscal stress makes this a compelling asset to keep in portfolios heading into 2026.
