Eric Sepanek
SBC Founder
Eric Sepanek is the founder of Scottsdale Bullion & Coin, established in 2011. With extensive experience in the precious metals industry, he is dedicated to educating Americans on the wealth preservation power of gold and silver.
Gold is steadily rising toward record levels following weeks of muted price action, but silver is pulling ahead in year-to-date returns. In a recent note to investors, Sprott’s Ryan McIntyre acknowledged gold’s growing role as the “ultimate global currency,” yet highlighted silver as the more compelling value play at the moment. The firm’s Senior Managing Partner sees rising investment interest in silver as the main driver, especially as gold’s higher price point pushes some investors to seek more affordable alternatives.
Gold & Silver Outshine in H1 2025
Gold and silver have extended their strong momentum from 2024, each delivering gains of approximately 25% in the first half of 2025. These returns have outpaced a range of other assets, including the S&P 500, Nasdaq, US Treasuries, Bitcoin, and broad commodities, highlighting the concentrated investor demand for precious metals.
Gold has reached a record high of $3,500 and is now attempting to retest that level. Meanwhile, silver has surged beyond a 14-year high, reinforcing its breakout performance.
Silver Surges Past Gold in July’s Early Rally
Without discounting gold’s bullish momentum and long-term demand drivers, Sprott is turning attention to silver’s accelerating rally. The two metals entered the second half of the year nearly neck and neck, but silver is now pulling ahead.
source: sprott.com
In just the first half of July, silver prices have surged over 5%, hitting a near-term high of $39. From its 2025 breakout of $28.92 to the recent peak, silver has gained approximately 34.87%, signaling growing investor appetite for the shiny metal.
Why Silver’s Price Moves Are Getting Bigger
While many institutions emphasize silver’s industrial use (which makes up about 60% of total demand), Sprott believes investment demand will drive the next leg of the rally.
Throughout the 2020s, around 800 million ounces (Moz) of silver have been removed from the available supply. As a result, even modest increases in buying can now have a greater impact on price.
Historical data shows that from 2021 to 2023, it took about 10.6 Moz of buying to push silver prices up by 1 percent. Since 2024, that number has dropped to just 7.2 Moz, showing the market’s growing price sensitivity and potential for a major breakout.
source: sprott.com
Investment Demand Fuels Silver’s Breakout
Silver’s breakout above the long-standing $35 resistance level—which had capped prices for years—signals that a new rally is already underway. This breakout is being confirmed by a surge in demand.
In the first half of 2025, investment demand surpassed all of 2024, reaching 95 Moz. Exchange-traded product (ETP) holdings, non-tangible assets designed to track the spot price, climbed to 1.13 billion ounces by midyear, putting them just 7% below the multi-year peak set in 2021.
At the same time, institutional investors’ net long positions on silver futures rose 163% compared to 2024, signaling growing conviction that silver prices will continue to rise and that professional investors are positioning for further upside.
Where Silver is Headed Next
Sprott has shared multiple silver price forecasts for 2025 and beyond. In its base case, the firm sees silver reaching $40.
However, company founder Eric Sprott takes a more aggressive long-term view, predicting silver could eventually hit $250. His outlook is based on the historically stretched gold-to-silver ratio and the increasing potential for a silver squeeze as available supply tightens.