Silver delivered a strong 10% gain in June 2024, outpacing major stock and bond markets in Japan, Europe, and the United States. Historical patterns suggest the metal may keep its momentum into July: over the last decade, July has been the best month for silver.
Two principal dynamics are behind the recent rise. First, with gold up about 43% over the past year, some investors are shifting toward silver as an alternative precious metal, seeking relative value and portfolio diversification. Second, industrial demand for silver is expanding—driven by solar-panel production, semiconductor manufacturing, and increased electronics demand tied to the artificial intelligence boom—which supports both near-term consumption and longer-term structural needs.
For investors seeking liquid exposure to physical silver, the iShares Silver Trust ETF is the largest option, holding roughly $17 billion in silver. This ETF has historically posted solid July returns: over the past ten years it averaged around 4.5% in that month, making July its strongest monthly performance. That said, silver’s performance is volatile and not assured—July has produced gains in only six of the last ten years, and the metal suffered a notable 6.3% decline in July 2015.
Investors should weigh potential rewards against risks. Silver’s dual role as both a precious metal and an industrial commodity means its price is sensitive to macroeconomic trends, monetary policy, and shifts in industrial demand. While seasonal patterns and recent momentum can inform short-term expectations, they do not guarantee future returns. Those considering exposure via ETFs or physical holdings should assess liquidity needs, storage and expense considerations, and how silver fits into their broader portfolio objectives.