‘Optimism around potential progress in Russia-Ukraine peace talks reduced geopolitical risk premia, leading to near-term liquidation. Elevated price levels also prompted speculative traders to reduce long positions, especially after silver’s steep 180% rise this year, noted Renisha Chainani, head of research at Augmont.She added that a slight recovery in the US dollar and bond yields weighed on sentiment. Despite the pullback, the broader trend remains structurally bullish.
Despite the dip, silver has outperformed most asset classes through 2025, gaining more than 160% year-over-year, well ahead of gold’s 70% gain.
The sharp rebound has been driven by a combination of factors: robust industrial demand, continued supply constraints, its recent classification as a critical mineral in the US, and increased investor interest fueled by momentum buying.
With silver gaining renewed attention in global markets, many investors are now exploring the different ways to participate in the rally, from futures and ETFs to physical bars and mining stocks.
How is silver traded?
Silver is accessible through multiple channels, aimed at both institutional and private investors:
Over-the-Counter (OTC) Market:
The largest marketplace for physical silver remains London, where banks such as JPMorgan and HSBC store large reserves of the precious metal in secure vaults. Trading takes place bilaterally between financial institutions and remains inaccessible to private participants without an institutional relationship. At the end of November 2025, London’s vaults contained more than 27,000 tons of silver.
Futures contracts:
Silver futures are actively traded on global exchanges such as the COMEX (New York), Multi-Commodity Exchange (MCX) and the Shanghai Futures Exchange. These contracts allow participants to speculate on future silver prices without physical delivery. Futures are typically rolled and offer the benefit of leverage, where traders can take positions by paying just a fraction of the total value (known as margin).
Exchange Traded Funds (ETFs):
ETFs such as iShares Silver Trust (managed by BlackRock) have become a popular route for retail investors. Each ETF share represents a certain amount of vaulted silver. The iShares fund currently owns approximately 529 million ounces of silver, worth approximately $39 billion at current prices. These ETFs can be easily bought or sold through trading apps, making silver exposure more accessible than ever.
Physical silver – Bars and coins:
Silver in its tangible form remains a favorite choice for many retail investors. Bars and coins are widely available through global bullion dealers, although there are considerations such as storage, purity and liquidity.
Silver mining shares:
Another route for exposure is through shares of publicly traded silver mining companies. These stocks generally follow the movements of the silver price, but are also influenced by company-specific factors such as production, management efficiency and debt levels. They can be traded like all other stocks through regular investment accounts.
Also read: Silver prices fall by Rs 21,000 in an hour as overheated rally cools down after crossing Rs 2.5 lakh/kg
(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times)
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