Silver is emerging as one of 2025’s top-performing precious metals, with investment inflows accelerating sharply on the back of rising geopolitical risk, inflationary concerns and a strong price outlook.

According to the Silver Institute, net inflows into silver-backed exchange-traded products (ETPs) reached 95-million ounces in the first half of the year – already surpassing total inflows recorded in 2024. The surge pushed global silver ETP holdings to 1.13-billion ounces by June 30, only 7% below the all-time high of 1.21-billion ounces set in early 2021.

Fuelled by the investment wave, silver prices hit a 13-year high in June, with the average price for the first half of 2025 climbing 25%. That compares closely with gold’s 26% year-to-date gain. The gold-to-silver ratio, which widened earlier in the year, also contributed to silver’s momentum, with investors viewing the metal as undervalued on a historical basis.

The value of silver ETP holdings surged past $40-billion in June, a record milestone, as nearly half of 2025’s gains occurred in that month alone. The last comparable spike was during the Reddit-driven silver squeeze of early 2021, when retail investors on the platform tried to drive up the price of silver by coordinating purchases of physical silver and related investment products.

Futures trading also reflected growing institutional conviction. Net managed money positions on the CME rose 163% from the end of 2024 to late June, with average net longs over the first half of the year hitting their highest level since 2021.

Still, retail investment trends diverged by region. India posted a 7% year-on-year gain in retail silver demand through mid-2025, driven by bullish sentiment and steady consumer interest. In Europe, a modest recovery continued from a low 2024 base, helped by reduced selling pressure in the secondary market.

In contrast, the US retail segment declined sharply, with overall bar and coin demand estimated to have fallen at least 30% year-to-date. Weaker new purchases, combined with significant profit-taking, weighed on demand. The absence of domestic financial shocks, like the 2023 collapse of Silicon Valley Bank, has also curbed safe-haven buying.

Looking ahead, the Institute notes potential for increased two-way activity in the physical coin and bar market. However, investor reaction to key price levels remains uncertain. If silver breaches $40/oz, the market may see mixed behavior, ranging from profit-taking to fresh buying on expectations of further gains.