## [# Silver Has More Upside Potential: A Unique Opportunity to Participate](/sections/etf-industry-perspective/silver-has-more-upside-potential-unique-opportunity-participate)
# Silver Has More Upside Potential: A Unique Opportunity to Participate
Combining physical silver and silver miners in one ETF makes sense for many investors.
[](/contributors/sprott-asset-management)
[By Sprott Asset Management](/contributors/sprott-asset-management)
Jul 23, 2025
Edited by: ETF.com Staff
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With the U.S. dollar’s hegemony under attack and investors looking to hedge currency risk in a climate of global uncertainty, precious metals have rallied. However, gold prices have steadied in recent weeks and, with many investors searching for “gold alternatives” as a haven, we believe the conditions are ripe for a sustained period of silver outperformance.
The only ETF of its type, the Sprott Silver Miners & Physical Silver ETF (SLVR) combines silver miners and physical silver in one fund in a bullish environment where—historically—silver-mining equities have outperformed spot silver.
SLVR gives institutional and individual investors a unique way to play silver’s considerable upside potential.
## Historically, Silver Lags, Then Leaps
As of mid-July, silver trades for $37.64 per ounce. Even with its 25% year-to-date return, silver still sits well below its 2011 high of near $50.
As investors move toward dollar alternatives and search for a discount to gold, it’s important to note that the silver-to-gold ratio, which measures relative performance between the two metals, is well above its historical average, suggesting silver may be considerably undervalued relative to gold.
Currently at 88, the silver-to-gold ratio is extreme, indicating significant opportunity. As CME Group’s OpenMarkets points out, the last three times the ratio has moved above 80, silver surged by about 40%, 300% and 400%. Silver’s rally, particularly against gold, appears to be taking shape.
Month to date,\* the spot silver price outpaced the spot gold price by 3.77%.
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## Why Pure-Play Silver Miners?
Physical silver's rise and upside potential only tell part of the story for strategic and long-term investors.
Silver miners have historically outperformed the metal during rallies, as pure-play silver miners add leverage to their exposure to rising silver prices. Adding to miners’ attractiveness, industrial demand for silver shows no signs of slowing in booming areas such as solar energy, AI, automotive tech and healthcare. We believe the structural environment is also favorable: Silver demand has meaningfully exceeded supply in the last five years, with signs only pointing to more shortfalls benefiting miners.
## Silver Equities Have Recently Outperformed Physical Silver During Bull Markets
*A “bull market” refers to a financial markets condition when prices are generally rising. A “bear market” refers to financial market conditions when prices are generally falling.*
*Source: Bloomberg as of 6/30/2025. The silver spot price is measured by the Silver Spot USD/Troy Ounce. Silver miners are measured by NMFSMT Index. You cannot invest directly in an index. Past performance is no guarantee of future results.*
Among SLVR’s top silver miner names are:\*
- First Majestic Silver Corp. (AG)—25.0% weight
- Endeavour Silver Corp. (EXK)—9.4% weight
- AbraSilver Resource Corp. (ABRA CN)—5.0% weight
- GoGold Resources Inc. (GGD CN)—4.2% weight
- Aya Gold & Silver Inc. (AYA CN)—4.1% weight
\*SLVR’s top five holdings by weight as of 7/14/2025. Holdings subject to change. A complete list of SLVR holdings is available [here.](https://sprottetfs.com/slvr-sprott-silver-miners-physical-silver-etf/#secHoldings)
The top-five equity holdings in SLVR comprise nearly 60% of the fund. An approximately 16.2% allocation to physical silver via [Sprott Physical Silver Trust (PSLV)](https://sprott.com/investment-strategies/exchange-listed-products/physical-bullion-funds/silver/) rounds out the fund’s 50 holdings, which have a heavy concentration of silver miners.
## The Bottom Line on SLVR
SLVR’s approach provides investors with more than diversification or a hedge. It offers a strategic ETF strategy to get the most out of the bullish writing—rooted in replicated history and clearly marked—on the wall.
By combining physical silver with a portfolio of miners that meet stringent standards to be included in the ETF’s index, we believe SLVR amplifies the upside potential in silver by leveraging the strength and outperformance of individual silver stocks. In an uneasy macroenvironment that includes a weak dollar, desire to hedge against economic uncertainty, and rising demand for silver, SLVR’s targeted dual exposure is a powerful tool for investors looking to play precious metals thoughtfully.
SLVR not only has momentum but also a demonstrated strategy. Investors seeking a dynamic way to participate in silver’s rally—and further upside potential—should consider adding SLVR as a long-term holding with the goal of capital appreciation and sustainable diversification.
\* Source: Bloomberg, for the period 6/30/25 – 7/15/25.
The spot gold price is the current market price to buy or sell one troy ounce of gold for immediate delivery. It reflects real-time trading activity and is often used as a benchmark for pricing gold bars, coins, and jewelry. The spot silver price is the live price at which one troy ounce of silver can be bought or sold right now. It’s the base rate before any added costs like minting, shipping, or dealer premiums.
Important Disclosures
The standardized performance of SLVR can be found [here.](https://sprottetfs.com/slvr-sprott-silver-miners-physical-silver-etf/)
**Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be higher or lower than actual data quoted. Call 888.622.1813 or visit www.sprottetfs.com for current month end performance. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.**
**An investor should consider the investment objectives, risks, charges and expenses carefully before investing. To obtain a Sprott Silver Miners & Physical Silver ETF Statutory Prospectus, which contains this and other information, visit** [**https://sprottetfs.com/slvr/prospectus**](https://sprottetfs.com/slvr/prospectus)**, contact your financial professional or call 1.888.622.1813. Read the Prospectus carefully before investing.**
The Sprott Silver Miners & Physical Silver ETF is new and has limited operating history. Investors in the Fund should be willing to accept a high degree of volatility in the price of the Fund’s shares and the possibility of significant losses. The Fund will be concentrated in the silver mining industry. As a result, the Fund will be sensitive to changes in, and its performance will depend to a greater extent on, the overall condition of the silver mining industry, highly dependent on the price of silver bullion. The silver and precious metals industry can be significantly affected by competitive pressures, central bank operations, events relating to international political developments, the success of exploration projects, commodity prices, adverse environmental developments and tax and government regulations. An investment in the Fund involves a substantial degree of risk. The Fund is not suitable for all investors. The Fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single investment could cause greater fluctuations in share price than would occur in a diversified fund.
**Shares are not individually redeemable. Investors buy and sell shares of the Sprott Silver Miners & Physical Silver ETF on a secondary market. Only market makers or “authorized participants” may trade directly with the Fund, typically in blocks of 10,000 shares.**
Funds that emphasize investments in small/mid-cap companies will generally experience greater price volatility. Diversification does not eliminate the risk of investment losses. ETFs are considered to have continuous liquidity because they allow an individual to trade throughout the day. A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual Fund operating expenses, affect the Fund’s performance.
One cannot invest directly in an index.
**Sprott Physical Silver Trust** (the “Trust”) is a closed-end fund established under the laws of the Province of Ontario in Canada. The Trust is available to U.S. investors by way of a listing on the NYSE Arca pursuant to the U.S. Securities Exchange Act of 1934. The Trust is not registered as an investment company under the U.S. Investment Company Act of 1940. The Trust is generally exposed to the multiple risks that have been identified and described in the [prospectus](https://www.sprott.com/media/1443/phys-prospectus-en.pdf). **This material must be preceded or accompanied by the Trust’s**[ **prospectus**](https://www.sprott.com/media/1443/phys-prospectus-en.pdf)**.**
The Sprott Silver Miners & Physical Silver ETF seeks to provide investment results that, before fees and expenses, generally correspond to the total return performance of the Nasdaq Sprott Silver Miners™ Index (NSLVR™). Nasdaq®, Nasdaq Sprott Silver Miners™ Index, and NSLVR™ are registered trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”) and are licensed for use by Sprott Asset Management LP. The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations. **THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S).**
Sprott Asset Management USA, Inc. is the Investment Adviser to the Sprott Silver Miners & Physical Silver ETF. **ALPS Distributors, Inc. is the Distributor for the Sprott ETFs and is a registered broker-dealer and FINRA Member.** ALPS Distributors, Inc. is not affiliated with Sprott Asset Management USA, Inc.
®Registered trademark of Sprott Inc. 2025.
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Related Topics [Silver](http://www.etf.com/topics/silver)
[Silver Miners](http://www.etf.com/topics/silver-miners)
[Precious Metals](http://www.etf.com/topics/precious-metals)
[Sprott](http://www.etf.com/topics/sprott)