Gold has had a remarkable run in 2026, but silver has quietly done something more interesting over the past year. The divergence between the two metals is setting up a conversation worth having, especially for anyone researching how physical metals ETFs have performed relative to each other.
Gold Leads, Silver Lags Year-to-Date
iShares Gold Trust (NYSEARCA:IAU) is up nearly 16% year-to-date through March 17, trading around $94. That move reflects gold’s traditional safe-haven role — investors have been rotating into the more liquid, more defensive metal as market anxiety has remained elevated.
Silver has lagged behind. iShares Silver Trust (NYSEARCA:SLV) has gained about 11% over the same period, while Sprott Physical Silver Trust (NYSEARCA:PSLV) trails at roughly 8%. The gap between gold and silver year-to-date underscores how differently the two metals respond when fear dominates sentiment.
The one-year picture tells a different story. SLV returned 132% over the past twelve months compared to 66% for IAU, demonstrating that silver can move dramatically faster than gold when industrial demand and monetary demand align. That historical speed is exactly what makes the current underperformance worth watching.
The short-term picture is different. Last week, silver dropped hard. SLV fell more than 10% in a single week while IAU pulled back only about 4%. That asymmetry reflects exactly how these two metals behave when fear spikes.
The Macro Factor: Market Fear and Real Rates
The single biggest factor for both IAU and SLV is the direction of real interest rates alongside market risk appetite. Elevated anxiety is exactly the environment where gold holds value and silver struggles, because silver carries industrial demand alongside its monetary role.
Real interest rates remain a headwind for non-yielding assets like gold and silver, as rising rates reduce the relative appeal of metals. CPI has been rising steadily, reaching 327.5 in February 2026, which keeps inflation hedging demand alive. The monthly BLS CPI release and Fed FOMC statements will determine which direction rates move next.
The Micro Factor: Structure Matters More Than You Think
SLV and PSLV both hold physical silver, but they are built differently. SLV, managed by BlackRock, holds 99.8% silver bullion and carries an expense ratio of 0.50% annually. With $46.2 billion in net assets, it is the dominant silver ETF by liquidity, meaning tighter bid-ask spreads and easier trading for most investors.
PSLV takes a different approach. The Sprott trust is Canadian-domiciled and allows qualified holders to redeem shares for physical silver bars, making it a favorite among retail investors who want a direct claim on the metal. PSLV has $20.4 billion in assets. The tradeoff is that PSLV can trade at a premium or discount to net asset value depending on retail demand, adding a layer of price risk that SLV does not carry in the same way.
For IAU, the expense ratio is just 0.25% on $83.8 billion in assets, making it one of the most cost-efficient ways to hold gold exposure. A widening PSLV premium to NAV signals strong retail demand for physical delivery, which historically has preceded silver price moves.
The Trade Setup in Plain Terms
Historically, when market volatility cools and real rates stabilize or fall, silver has closed the gap with gold quickly. The PSLV premium or discount to NAV can serve as a data point reflecting retail demand for physical delivery. Analysts and researchers often monitor this metric alongside Treasury yield trends when studying precious metals price dynamics.
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