Silver has nearly a 175% increase this year, and this rally indeed exceeded expectations. Some say it is following gold, after all, gold is supported by central bank reserves from various countries. But with such a fierce rise, it feels more than just following the trend.

Upon closer thought, the driving forces may come from several aspects. First is actual demand—the demand for silver in industries like photovoltaics and electric vehicles is genuinely growing. It’s not just a financial asset; fundamentally, it remains an important industrial raw material. Second, the capital side may also be contributing, as silver’s higher volatility compared to gold makes it more attractive to investors.

Compared to gold’s steadiness, silver appears more active, which perhaps also explains why its gains have outpaced so much.