The performance of silver-based exchange-traded funds (ETFs) drew attention in the fourth quarter of 2025. During this period, two silver ETFs recorded significant gains: abrdn Physical Silver Shares ETF (SIVR), which rose 52.1%, and iShares Silver Trust (SLV), which increased by 52.0%. This performance positioned silver ETFs among the best-performing ETFs in Q4 2025.
The gains were in line with the rise in global silver prices, which reached new highs. Several fundamental factors, including supply dynamics, demand conditions, and the global macroeconomic environment, influenced this price movement.
Fundamental Factors Behind the Rise in Silver Prices
Silver is known as a metal with dual functions, serving both as a store of value and as an industrial raw material. In recent years, silver’s role as an industrial metal has become increasingly prominent, particularly in the technology and energy sectors. Silver is used in various applications such as solar panels, electronic components, artificial intelligence (AI) technologies, and clean energy solutions.
On the supply side, the silver market continues to face production constraints. This situation has created a structural deficit between supply and demand, which has contributed to upward pressure on prices. The combination of limited supply and sustained industrial demand has been a key factor supporting the performance of silver-based ETFs throughout Q4 2025.
Macroeconomic Conditions and the Position of iShares SLV
In addition to fundamental factors, the weakening of the U.S. dollar has also influenced silver price movements. As commodities are generally priced in U.S. dollars, pressure on the dollar can make commodity prices, including silver, relatively higher. This environment was reflected in the performance of silver ETFs, such as the iShares Silver Trust (SLV), which is designed to track movements in the physical silver price.
For most of 2025, silver prices moved within a relatively stable range. However, the strength seen in the fourth quarter indicated a price adjustment amid improving market fundamentals. Nevertheless, higher valuations remain a factor to consider, as they may limit further upside in the short term.
Overall, the performance of iShares Silver Trust (SLV) in Q4 2025 reflects market responses to changes in silver fundamentals and global economic conditions, making it one of the more notable commodity ETFs during the period.
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