When it comes to precious metals, silver is often seen as gold's understudy. In the Olympics, it's second place, and in investors' minds, it has long played the role of "poor man's gold."
However, in 2025, the silver price has been stealing the show. Silver's gains have surged to multi-year highs, even outpacing gold's rise and shining brighter than most major asset classes.
Why silver is stepping out of gold's shadow
Gold has long been the poster child for wealth preservation: A traditional safe-haven asset and store of value used by investors to hedge against inflation, currency weakness, and financial turmoil. Silver, on the other hand, has historically played second fiddle, with much of its demand tied to jewellery, coins, and decorative uses.
But that narrative is changing rapidly.
Like gold, silver retains its reputation as a safe-haven asset, offering investors portfolio diversification and protection during times of market stress. Its affordability also makes it more accessible to retail investors compared to gold bullion.
What sets silver apart, however, is its growing industrial relevance. The metal boasts superior electrical and thermal conductivity, making it indispensable in the technologies shaping the global economy:
- Solar power: Silver is a critical component in photovoltaic cells. Consumption for solar panels has more than doubled since 2016, and the International Energy Agency expects global solar electricity generation could triple by 2030.
- Electronics and EVs: Silver's use in electronics has risen by about 50% over the past decade, driven by smartphones, electric vehicles, and other high-tech devices.
- Green transition: As the world accelerates towards decarbonisation, silver is increasingly viewed as both a precious metal and an industrial commodity.
This dual identity gives silver a unique investment case: It combines gold-like qualities as a store of value with the growth trajectory of a strategic industrial metal.
Silver vs gold: The performance gap
Both metals have enjoyed strong runs over the past year, but silver has stood out. At the time of writing, prices have surged more than 60% to above US$46 an ounce, the highest in more than a decade. That outpaces gold's 47% year-to-date gains and dwarfs the S&P/ASX All Ordinaries Index (ASX: XAO), which has risen around 7.8% in the same period.
The comparison highlights why some analysts view silver as a more leveraged play on precious metals. Gold may remain the cornerstone, but silver's evolving role in the green economy is reshaping its supply and demand fundamentals and fuelling speculation of further upside.
How ASX investors can get exposure
Unlike gold, the ASX has very few pure-play silver miners. Most silver is produced as a by-product of other metals such as copper, zinc, or gold. That makes ETFs a practical way to gain exposure.
Here are two options available on the local market:
1. Global X Physical Silver ETF (ASX: ETPMAG)
This ETF is backed by physical silver held in vaults, giving investors direct exposure to the metal's spot price. It's one of the simplest ways to participate in silver's performance without buying and storing bullion.
2. Global X Physical Precious Metal Basket ETF (ASX: ETPMPM)
The basket ETF offers a low-cost and secure way to access physical silver, as well as gold, platinum, and palladium via the ASX.
Foolish Takeaway
Silver may be second to gold in reputation, but its unique mix of industrial demand and safe-haven appeal means it deserves more attention. With ASX's precious metals ETFs offering simple, low-cost exposure, investors have an easy path to add some shine to their portfolios.
The post Silver price outpaces gold in 2025 with two ETFs in focus appeared first on The Motley Fool Australia.
Motley Fool contributor Leigh Gant has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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