Silver: A Tactical Play

Silver is emerging as a high-powered asymmetric play—combining fiscal tailwinds, industrial demand, and historical outperformance in precious metals cycles.

Silver serves both as a monetary hedge and a leveraged catch-up trade to gold. While Gold has already broken out to all-time highs, Silver is still lagging—setting the stage for a reversion trade with significant upside.

Silver not only tracks Gold, but has outperformed it in 10 of the last 26 years, particularly during bull markets, often with higher amplitude. In previous cycles, Silver delivered explosive returns of +1,800%, +230%, and +90% — highlighting its torque during periods of macroeconomic and monetary stress.

What’s new this time is Silver’s overlooked role in the AI infrastructure buildout. With the rise of energy-intensive data centers, Silver demand from data centers is expected to surpass that of EVs by 2028, adding a powerful new leg to its industrial growth story.

Market dynamics confirm this bullish setup. The pronounced skew in Silver’s volatility surface and elevated long-dated implied volatilities signal investor positioning for sharp upside.

With the gold/silver ratio still near historical extremes, Silver's catch-up potential is real and timely — offering investors a unique way to express both macro conviction and thematic growth.