Weekly Buzz: Silver is more than just second place

Not all that glitters for investors is gold, some of it is certainly silver. Let’s dig into whether this precious metal deserves more than a runner-up medal, or whether its recent volatility makes that a tougher call.

A precious and industrial metal

Beyond its status as a safe-haven asset, silver also serves as an industrial workhorse. Manufacturing makes up about 58% of its demand, compared to roughly 6% for gold. That’s because it plays a pivotal role in tech – think solar panels, batteries, and water purification. This hybrid nature ties silver to both market sentiment and economic activity, meaning it can behave like a cyclical asset: when growth accelerates, silver demand tends to rise; when growth slows, it tends to ease.

Because silver’s market is smaller and less liquid than gold’s, its price can be more volatile; a dynamic that’s been on display so far in 2026. Still, the precious metals often move together. Both tend to do well when bond yields fall, inflation rises, the US dollar weakens, markets grow turbulent, or some mix of those factors.

Global silver demand has outstripped supply for the past five years, eating into the surplus produced in years prior. Solar is estimated to have made up 17% of total silver consumption last year, up from 8% in 2016. With the global push toward renewable energy sources, particularly in China and India, there is a structural demand for the industrial metal.

What’s the takeaway for investors?

Silver’s recent run in the market has been bumpy, to say the least. Prices surged on a wave of buying as the trade became overcrowded, and pushed the metal into volatile territory. When markets are driven more by flows than fundamentals, sharp reversals can occur.

That said, silver's investment case remains intact. Strong industrial demand from the energy transition, persistent supply deficits, and its traditional role as a store of value all point to a metal whose fundamentals are worth paying attention to.

(If you’re looking for an accessible way to invest in silver, check out Flexible Portfolios.)

In Other News: Japan’s election got its markets moving

Japan’s prime minister, Sanae Takaichi, has scored a historic win, securing the largest majority for her party in more than 70 years. Investors are expecting more regulatory stability and looser fiscal policy; a combination that should boost the Japanese economy overall.

The supermajority gives Takaichi the power to push legislation without relying on opposition support, clearing the way for more forceful policy shifts. Bigger government spending, backing for sectors like AI and semiconductors, defence expansion, and long-delayed structural reforms around corporate governance and the labour market are all on the ticket.

Following the news, the Nikkei 225 and the broader Topix both surged to all-time highs. The momentum, dubbed the "Takaichi trade," echoes the market rally that followed Shinzo Abe's reform agenda over a decade ago. Japanese corporate profitability has improved since then, and investors are betting Takaichi's agenda could accelerate that trend further.

Japan’s bond market has been less enthusiastic. Japanese government bond yields have been climbing for months on expectations of more government borrowing, and remain near multi-decade highs. Investors will now look for signs of just how far, and how fast, the government is willing to go on its economic agenda.

(You can invest in Japan’s long-term growth story with our Japan ETF on Flexible Portfolios.)

These articles were written in collaboration with Finimize.

Simply Finance: Cyclical asset

A cyclical asset moves in step with the economy. When growth picks up, demand for things like commodities and luxury items rises. When growth slows, that demand fades. Saying that something is cyclical means that it’s more reliant on where we are in the economic cycle, rather than steady, all-weather demand.