Investors Are Choosing Silver Right Now

As gold prices remain supported by central bank demand and platinum consolidates after a rapid surge, silver is increasingly becoming the go-to choice for retail and institutional investors in mid-2025. Silver’s strong fundamentals, favorable gold-to-silver ratio, and rising exchange-traded fund (ETF) inflows are drawing significant attention, making it one of the most compelling precious metal investments of the year.

Silver Gaining Traction While Gold Holds Steady

Despite a lack of fresh highs in the gold market since April 2025, central bank buying continues to provide a reliable floor for prices. In May alone, central banks purchased a net 20 tonnes of gold, with countries like Kazakhstan, Turkey, and Poland leading the charge. This persistent demand is part of a broader trend, with over 1,000 tonnes of gold added to reserves annually for the past three years—well above historical averages.

However, while gold maintains its role as a strategic reserve asset, silver is showing strong momentum among private investors. Unlike gold, which remains tightly tied to macroeconomic themes like interest rates and inflation, silver's recent price action reflects a growing recognition of its investment value and its industrial relevance.

ETF Inflows Signal Investor Confidence in Silver

One of the clearest signs that investors are choosing silver right now comes from the ETF market. Between June 1 and July 4, 2025, silver ETFs saw net inflows of 990 tonnes, indicating a sharp uptick in investor participation. The first half of June saw over 500 tonnes added during a rapid price rally, followed by an additional 426 tonnes in late June and early July as the price stabilized above $36 per ounce.

These flows have propelled global silver ETF holdings to over 24,000 tonnes—the highest since August 2022—representing a total value of approximately $28.5 billion. More than half of all net inflows into silver ETFs in 2025 have occurred in the past month alone, underscoring the renewed bullish sentiment surrounding silver.

Silver Still Undervalued Relative to Gold

Another key factor attracting investors to silver is its current undervaluation compared to gold. As of July 2025, the gold-to-silver ratio stands at 90.3, well above the 10-year average of 80.2. This wide disparity suggests that silver could have substantial upside potential if the ratio reverts toward historical norms.

Many investors are now positioning themselves for this reversion, anticipating that silver prices will continue to close the gap with gold. The recent strong performance supports this thesis—spot silver closed last week at a new rally high of $36.91, before stabilizing slightly at $36.665 per ounce at the beginning of this week.

With silver’s dual role as a monetary and industrial metal, and its continued affordability compared to gold, the metal is becoming an increasingly attractive addition to diversified portfolios.

Platinum Slows After a Meteoric Rise

While silver is gaining ground, platinum appears to be entering a consolidation phase after a sharp rally in recent months. Platinum prices rose for five consecutive weeks, reaching a peak close of $1,394 per ounce, but have since shown signs of slowing down. The recent choppy price action—with daily moves of up to $50—suggests the rally may be cooling.

The Relative Strength Index (RSI) also indicates weakening upward momentum, pointing toward a possible period of sideways trading as the market digests recent gains.

On the supply side, platinum producers are consolidating operations to reduce costs. Impala Platinum recently merged its operations with Royal Bafokeng Platinum in South Africa, aiming to optimize underground mining infrastructure and lower overhead. These structural improvements, along with a recent rise in the South African PGM basket price, may support platinum’s long-term outlook, but for now, the price is likely to stabilize rather than surge.

Why Silver Could Outperform in H2 2025

With gold supported by central banks and platinum catching its breath, silver stands out for several reasons:

1. Strong Investor Demand

The surge in ETF inflows shows that both retail and institutional investors are increasing their silver exposure. These inflows may continue if silver remains below $40/oz and the gold-to-silver ratio stays historically wide.

2. Industrial Use Cases

Silver plays a critical role in green technologies, especially solar panel production and electric vehicle components. As clean energy transitions accelerate, so too will the industrial demand for silver.

3. Attractive Entry Point

With prices still below historical highs and far cheaper than gold, silver remains accessible to a broader range of investors looking for exposure to precious metals.

Key Silver Price Levels to Watch

• Support: $36.00/oz has acted as a key support zone in recent sessions.

• Resistance: A break above $37.00/oz could trigger further technical buying.

• Medium-Term Target: Analysts are watching for a move toward $40/oz if current trends continue.

As of today, silver is trading at $36.665/oz, holding firm after testing intraday lows and rebounding alongside broader strength in the precious metals complex.

Conclusion: The Case for Silver in 2025

In a market dominated by headlines about gold's central bank support and platinum's volatility, silver is quietly becoming the top pick for forward-looking investors. With strong ETF inflows, undervaluation versus gold, and robust industrial demand, silver offers a compelling mix of upside potential and diversification benefits.

As the second half of 2025 unfolds, expect silver to remain in focus—not just as a cheaper alternative to gold, but as a high-conviction investment in its own right.