High Beta, Short Supply: The Drivers of Silver's New Rally

Much like gold, the price of silver saw significant growth across the month of August. Key Takeaways: Silver and gold both saw their spot prices increase in August, but insights from Sprott note that silver’s price rose across the month even higher than gold did. As for why this is happening, the experts at Sprott attribute it to a mix of high beta, beneficial price volatility, and an ongoing supply deficit, among other factors. Those looking to benefit from silver’s ongoing momentum may want to consider doing so through a silver mining ETF like the Sprott Silver Miners & Physical Silver ETF (SLVR).

As Paul Wong, CFA, managing partner and market strategist, and Zenny Zhu, CFA, director, research & investment strategy at Sprott Asset Management noted, gold and silver prices both rose in August. As of August 31, 2026, spot gold grew by 9.67% across the month, while spot silver surged by 15.59%. Gold and silver are both doing well, but as Wong and Zhu’s report notes, spot silver saw stronger price gains than spot gold did in August. Some advisors and investors may be wondering why this occurred.

Wong and Zhu noted that silver has surpassed gold’s rally due to its higher beta compared to gold. Furthermore, silver’s higher price volatility could be playing a noticeable factor here. “Investors need no reminder that silver tends to exhibit greater volatility than gold,” Wong and Zhu added. “Yet in certain environments, what is often perceived as a drawback can become a distinct advantage. Investors need look no further than the tremendous rally from October 25, 2025, to January 28, 2026, during which spot silver surged from $46.85 to $116.70, outperforming gold handily.”

The Sprott Insights piece also noted a noticeable silver supply deficit at play. With global silver inventories struggling amid robust demand for the metal, spot silver could see favorable tailwinds in the months to come.

Silver’s recent price movements — and the factors that may be driving them — could work in the favor of silver miners. Mining companies can take advantage of rising silver prices, tightening supplies, and a growing need for the metal. As an example, take a closer look at the Sprott Silver Miners & Physical Silver ETF (SLVR). SLVR is an ETF from Sprott that invests in silver miners and physical silver itself. Those who believe in silver’s long-term thesis may find great appeal from the fund’s approach. In the meantime, SLVR, much like spot silver, saw significant gains during the month of August. As SLVR’s fund page notes, the fund’s NAV rose 31.39% across the month of August, as of August 31 2026.