Sprott Physical Silver Trust

PSLV

Market cap $10.8B

Gold prices hit an apex in October before taking a breather as 2025 winds down — a chance for investors to buy the dip. This could be a golden opportunity to get exposure to a pair of ETFs before another rally ensues: the Sprott Physical Gold Trust (PHYS) and the Sprott Gold Miners ETF (SGDM).

The holiday season not only presents an opportunity to spend time with loved ones, it also allows investors to tilt their portfolios towards assets that can capture short-term upside. One of those is gold.

In cases where an asset is in the midst a strong rally, investors are typically gripped with the fear that they already missed out on the major move. That doesn't appear to be the case with gold, which should be approached with a strategic allocation strategy in mind as opposed to simply chasing gains.

Earlier this October, silver entered an unusual and rare deep backwardation where the spot market rose to a gap of $2.88 above the futures market. While there were geopolitical and international circumstances that triggered the occurrence, it also revealed that the paper futures market has reached its limits with capping prices.

Realizing the importance of critical minerals to meet future  energy demands, the White House has made strategic investments in certain companies. These include MP Materials, Lithium Americas Corp, and Trilogy Metals Inc.

The Federal Reserve's recent rate cut of 25 basis points could amplify gold's current rally. Prices have already broken through the $3,700 price mark, and another record high could hinge upon how aggressive rate cuts will be in the coming months.

The prospect of interest rate cuts this month and through the rest of the year is elevating prices for gold, but silver is also benefiting. The precious/industrial metal crossed the $40 price mark in the first week of September, which it hasn't done since 2011.

Central banks' willingness to buy more precious metals should help buoy prices for both gold and silver. Around the globe, central banks continue to quench their thirst for both, providing investment opportunities in ETFs with exposure to both metals.

Silver continues to show its luster alongside gold this year, but both carry differing demand drivers. Silver will benefit from recovering industrial activity and increasing investment demand—both highlighted in Sprott's latest silver report.

As stock market investors get a reprieve from the tariff volatility, silver prices have been showing signs of outpacing gold. If this is the start of an early trend, investors will want to consider exposure to the white metal.