The silver market has experienced dramatic price swings in recent months, reaching an all-time high of $121.64 per ounce on January 29, 2026, before retreating to approximately $75. Analysts now project an average price of $78 per ounce for 2026, according to Reuters. This volatility has heightened interest in silver exchange-traded products, sparking a comparison between two major physical silver ETFs: BlackRock's iShares Silver Trust (SLV) and abrdn's Physical Silver Shares ETF (SIVR).
Cost and Scale Differences
SLV, the larger of the two, manages $36.45 billion in assets and charges a sponsor fee of 0.50%. Its one-year total return through March 31 stood at 112.40%. The fund boasts substantial liquidity, with average daily trading volume of nearly 29.9 million shares over the past 30 days, making it attractive to institutional investors. In contrast, SIVR holds $4.97 billion in net assets and offers a lower net expense ratio of 0.30%, with a gross expense ratio of 0.45% before fee waivers. The fund's one-year NAV return reached 112.79%. SIVR's sponsor fee waiver is scheduled to continue until February 28, 2027, according to the fund's fact sheet.
The 20-basis-point fee difference may seem small, but for long-term buy-and-hold investors, it can compound significantly over time. However, SLV's superior liquidity and deeper options market give it an edge for active traders who prioritize execution speed and market depth.
Silver Miners Outshine Gold Miners
The comparison extends beyond physical silver funds to mining equities. The iShares MSCI Global Silver and Metals Miners ETF (SLVP) has outperformed the Sprott Gold Miners ETF (SGDM) over the past year, driven by silver's stronger price performance. SLVP holds stakes in 36 companies focused on silver exploration and mining, with net assets of approximately $1.0 billion as of April 24. Its total return over the past year was 141.98%, significantly ahead of SGDM's performance. SLVP charges a 0.39% expense ratio and offers a 1.7% dividend yield, compared to SGDM's 0.50% fee and 1.0% yield.
SGDM, which tracks major gold miners listed in Canada and on U.S. exchanges, had net assets of $824 million as of March 10. While gold miners have benefited from rising gold prices, silver's more volatile and dramatic gains have given silver-focused miners an extra boost.
Physical Silver Market Tightens
The physical silver market remains under significant strain. The Silver Institute and Metals Focus reported that the sector is on track for a sixth consecutive year of structural deficit. Since 2021, approximately 762 million ounces have been drawn from stockpiles. Although London lease rates have largely normalized, according to Philip Newman, managing director at Metals Focus, the risk of a squeeze has not entirely dissipated.
Despite the deepening deficit, total silver demand is projected to decline by 2% in 2026, according to Reuters. Industrial demand, a key driver, is expected to soften, which could temper price gains. Analysts at StoneX, including Rhona O'Connell, have suggested that a renewed attack on the $100 level is possible if geopolitical tensions ease, though any rally may prove short-lived.
Market Performance and Risks
On Monday's trading session, SLV fell 0.49% to $68.45, while SIVR declined 0.50% to $71.92. SLVP dropped 1.43% to $37.10, and SGDM lost 1.71% to $76.00. These moves reflect the broader market uncertainty and the inherent volatility of commodity-linked funds. abrdn's risk disclosures highlight that trusts tied to single commodities tend to experience greater price swings.
Investors face a familiar dilemma: choose the lower-cost option in SIVR, or opt for the more liquid and established SLV. For those seeking exposure to silver miners, SLVP offers a focused play on the metal's upside, albeit with higher volatility. As the physical market remains in deficit and price action continues to be driven by macroeconomic factors and industrial demand trends, both ETF and equity investors must weigh cost, liquidity, and risk carefully.
