Silver Prices Are Soaring, and So Is This ETF

As investors grow concerned about the economy and the state of the overall stock market, they have been turning elsewhere for safety. Gold is typically seen as a safe asset to hang on to amid turmoil, but lately, it's been silver that has been generating a lot of attention, with its value spiking over the past year.

In the past 12 months, the price of silver has nearly tripled. A year ago, it was worth around $30 per ounce. As of Jan. 13, 2026, it was up over $87.

One exchange-traded fund (ETF) that has benefited from this surge in excitement is the iShares Silver Trust (NYSEMKT: SLV). During the past year, it has risen by around 190%, vastly outperforming the S&P 500, which is up 20% during that stretch.

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The iShares Silver Trust can be a good investment if you're bullish on silver

The iShares Silver Trust aims to track the price of silver and is the largest silver ETF in the world. It enables you to benefit from the precious metal's rising value without having to physically own it.

It charges an annual expense ratio of 0.50%, which is modest and in line with other commodity-linked ETFs. And it may be justifiable for investors who want an easy way to invest in silver, without the need for buying individual stocks or holding physical assets.

The downside is that there is no diversification with this investment: It will all hinge on the rise or fall of silver. The ETF has continued to rise this year, and as of Jan. 13, it's up around 12% year to date. The fund's inception date was April 2006, and with silver skyrocketing over the past year, the ETF is now at an all-time high.

Are silver prices still headed higher?

When the value of any investment or asset takes off in a short period, the temptation is to assume that it'll keep rising. Hype and excitement can take over, resulting in investors paying sky-high prices that prove to be unsustainable later on. There are those who believe silver will continue to rise to more than $100, while others believe it's due for a correction given its red-hot run over the past several months.

Gold and silver prices typically move in the same direction, because investors see them as safe-haven assets. One metric that analysts often look at is the gold-to-silver ratio, which tells you how many ounces of silver it would take to buy a single ounce of gold. It is normally within a range of 50:1 and 80:1. Last April, the ratio soared to more than 100:1, suggesting that silver was undervalued in relation to gold.

Now, however, with silver rallying faster than gold, the ratio is around 52:1, which may suggest the opposite: Silver is becoming too expensive in relation to gold. It hasn't been at these levels since 2012, and although that doesn't guarantee that a correction is due, it does highlight how much more expensive it has become.

Should you add the iShares Silver Trust to your portfolio?

The iShares Silver Trust ETF can be a good way to add some diversification to your portfolio, but given how hot the metal has been of late, it may also add considerable risk. This is, after all, a speculative asset to be holding on to. As quickly as it has run up in value, it can just as quickly give back those gains if investors start to pile more money into gold or other investments.

For diversification purposes, it could make sense to buy the ETF, but if you do so, you may want to consider just a small position (e.g., less than 5% of your portfolio) to ensure you don't have too much exposure to just a single asset.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.