Sprott Strategist Explains Why Silver Trades Differently from Gold

Kenny Zhu, Sprott’s Director of Research and Investment Strategy, notes that industrial demand accounts for 50% to 60% of silver consumption, giving silver price movements a different profile from gold. Silver is mostly a byproduct of copper, gold, and other mining operations, so miners base production decisions on the primary metals rather than silver prices, limiting the supply response. Silver’s free float is relatively small, which can amplify price swings when ETF inflows and momentum accelerate.