After the gold race now it is up to silver: how to invest in precious metals with the ETFs
It could have a rise in the industrial use that is missing from the Lingotto
Gold is increasingly protagonist. In recent weeks, thanks to an increasingly uncertain market, Yellow metal prices have reached a new historical maximum At $ 3,509.90 the ounce, then the price dropped slightly. The performance since the beginning of 2025 has so far risen to 30%, while at one year and 3 years the increase of the prices are respectively 46%and 83%. A trend that, in the current scenario, seems destined to continue.
But for Ned Naylor-Leyland, Jupiter AM’s Gold Silver Fund manager, The real surprise of 2025 will be silver: «It has a rising potential that gold does not have. Both metals move in the same direction, therefore they go up and descend together, but silver has better prospects since, as a raw material, it is used in many production activities, As for example for smartwatches, for new solid state batteries and for everything that has to do with electronics and green technology. Precisely for this reason I believe that silver today represents a very interesting opportunity ».
The price of silver is not at the maximum, the weight of industrial demand
Despite the race of the last few years (from the minimums of 2022, to $ 17.63 the ounce, the prices almost doubled), The price of silver remains far from its historic tops At an altitude of 49.82 (today it is worth about 33 dollars), reached twice in the past, in 1980 and 2011. Naylor-Leyland, however, believes that this gap can be filled already during this 2025: « The fundamentals of the mineral supply of silver compared to the Dphysical and industrial homandaindicate a possible reprinting in the near future. The application of silver is expected by 2030 will be double the mining supply. This question is intended to grow also in the internet of Things and other areas of digitization growth « .
The investment application for silver
Furthermore, this imbalance does not take into account the potential increase in the investment demand for silver, « which is the most powerful and difficult to predict component – points out the expert -. For now, the silver investment demand is negligible. However, we have seen from the way in which cryptocurrencies and actions such as Nvidia and Microstrattegy have been exchanged in the previous twelve months that investors are attracted by the strong bullish trends. As soon as the savers are starting to enter the market, the silver will start running and we will see it climbing up to 50 dollars, probably already this year « . Even the expectations of a further reduction in interest rates by the Federal Reserve (at least two other cuts are estimated in 2025) and a weaker dollar could be a decisive factor for the increase in prices, not only of silver, but also of gold.
The ETF factor to invest in silver
« I think we are in a very important moment in monetary history, with the gold that is returning to the center of the international finance table as a form of money without risk-still notes Naylor-Leyland-. This will mean higher prices. There is the possibility of a real re -enabled event, which would entail a strong increase in value of the assets held by central banks. Until today, The price race was powered by purchases on Futures rather than from the participation of long-only investors. This year we must monitor any wider participation and the share of physical metals held in the ETFs represents a good indicator of the interest and sentiment in the world of long-only investors. When this change will occur significantly, we will see the beginning of another important rally for gold ».
But watch out for the potential return of inflation, which could force the Fed to raise interest rates.
