It has been a tough year for most popular precious metals. The SPDR Gold Trust (GLD -2.79%), for example, is down roughly 8% year to date. Silver’s year has been even worse. The iShares Silver Trust (SLV -2.89%), for example, is down nearly 30%. A $10,000 investment on Jan. 1 would be worth a little over $7,000 today.
Why has silver underperformed gold so heavily? There’s one obvious culprit.
SLV iShares Silver Trust
$45.30-$1.35 (-2.89%)
NYSEMKT · As of 11:23 AM ET 11/12/26
Here’s why silver is underperforming gold in 2026
From war to inflation, the global economy continues to face numerous headwinds. Gold is typically an attractive asset in uncertain, inflationary periods. Only about 10% of gold production is used in industry, which minimizes its exposure to swings in the global economy.
Image source: Getty Images.
Industrial applications, meanwhile, account for roughly 60% of global silver demand. During economic stress, silver’s value can suffer. The long-term potential for silver demand, however, remains promising.
“Silver has faced a more challenging backdrop in recent months after a positive 2025, with profit taking and macro headwinds weighing on prices,” investment manager BlackRock observes in a Nov. 10 report. “While silver is down year-to-date, its longer-term demand outlook continues to be supported by industrial applications tied to AI infrastructure, electrification, and solar.”
Data center construction, grid electrification, and renewable energy remain long-term growth opportunities — meaning over decades, not months. If you’re looking to add exposure to these themes, you can do so at a discount by adding a silver ETF to your portfolio.
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Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends BlackRock. The Motley Fool has a disclosure policy.