Sprott Silver Miners & Physical Silver ETF

SLVR

Market cap $458M

December may just be getting started, but things are certainly not looking very chilly for silver prices.  Thus far, the winter season seems to be moving in favor of the precious metal.

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.

Consider how gold has performed as of late. It shouldn't come as a surprise that interest in silver hasn't been as strong.

The transition from fossil fuels to alternative energy sources should position silver for additional upside. For example, certain parts of the globe that harness solar power could fuel demand for the industrial metal.

Platinum (PLTM, PPLT), Palladium (PALL), Lithium (LITP), and Silver (SLVR) ETFs all jumped 10%+ last week despite weak Wall Street.

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.

In its most significant revamping since 2018, the US Geological Survey (USGS) is updating the critical minerals list to include silver and copper. The 2025 iteration has 54 mineral commodities; 50 were added based an economics effects assessment.