Forget gold! The silver price is skyrocketing and this ASX ETF is riding the wave

Gold's little brother is growing up.

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Investors with a taste for gold are seeing September shine brighter than ever.

The gold price has surged to an all-time high at the start of the month, rising above US$3,800 per ounce for the very first time.

And leading S&P/ASX 200 Index (ASX: XJO) gold stocks have followed suit.

Shares in the world's largest gold miner Newmont Corporation CDI (ASX: NEM) have soared by 53% in the past year to $115.45 apiece at the time of writing.

Fellow gold mining powerhouse Evolution Mining Ltd (ASX: EVN) has fared even better.

Its share price has jumped by 133% in the same timeframe to $8.97 per share.

And some experts believe the gold rally could have plenty of fuel left in the tank.

But gold isn't the only precious metal currently making the headlines.

Silver has also entered the spotlight thanks to its growing role in modern-day industries such as solar panel production.

And the silver price is booming.

Why silver?

Like gold, silver has long been viewed as a safe-haven asset offering protection against economic uncertainty and inflation.

It has traditionally been used in jewellery, coins, tableware, or as bullion stored in vaults.

However, this story is now changing.

Silver is fast-becoming indispensable to the new-age industry due to the metal's superior electrical and thermal conductivity.

In essence, silver is turning into a critical component in solar panels, with consumption for this purpose more than doubling since 2016.

And according to the International Energy Agency, global solar electricity generation could triple by the end of the decade from 2023 levels.

At the same time, silver use in electronics has climbed by about 50% in the past ten years, highlighting its growing importance in high-tech applications.

This evolution in silver's role is reshaping the supply and demand dynamics for the metal and helping push prices higher.

Silver price snapshot

Silver has staged an impressive rally over the past year, soaring by 44% to break above US$40 per ounce.

This ascent mirrors gold's performance during the same period.

And it far outpaces the broader market which has seen the All Ordinaries Index (ASX: XAO) rise by 11% over the last twelve months.

In addition, the silver price has now reached its highest level in more than a decade.

Investor options for silver exposure

The ASX offers a wide array of options for gold investors, with dozens of mining companies calling the All Ordinaries Index home.

However, the same cannot be said for silver.

Silver is typically produced in small quantities as a by-product of other metals such as copper or gold.

As a result, there are no dedicated ASX 200 silver miners, and the smaller mineral exploration plays are few and far between.

One practical avenue for exposure to the metal is via an exchange-traded fund (ETF) that provides access to physical silver without the need to purchase bullion.

More specifically, Global X Physical Silver Structured (ASX: ETPMAG) aims to generate returns that mirror the silver spot price in Australian dollars, minus fees. 

And over the past year, shares in this ASX ETF have rocketed by 49% to $57.26 each at the time of writing.

Motley Fool contributor Bart Bogacz has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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