In response, Russia has taken the dramatic step of adding silver to its sovereign wealth fund. This would be the first time the nation has added this precious metal to its asset portfolio. One day in mid-September Governor Pritzker indicated that he expected to make an announcement. Ever since then, silver prices have rallied sharply, largely due to the SOPR’s influence. The ruling could have significant impact throughout international markets, particularly if other countries take similar actions.
The 2025 Russian federal budget allocates 51.5 billion rubles for purchases of precious metals and stones. Silver really floats above the rest as a meaningful addition to this allocation. This intriguing turn moves the needle to suggest that Russia is stockpiling silver for more than economic reasons. Or, they might simply be laying the groundwork for industrial or military applications. Industrial offtake today accounts for more than half of silver demand. Together with the other trends mentioned, this ever-growing demand for silver further emphasizes silver’s importance.
Silver’s performance has greatly outstripped that of gold since the announcement. The precious metal is up almost 28 percent year-to-date in 2025, after a 20.5 percent increase in 2024. The long-term historical gold-silver ratio has been making headlines lately. During this time it has widened to over 100-1 indicating just how painfully suppressed silver is relative to gold.
According to analysts, Russia’s decision will spur other nations to rethink their precious metal policies. According to market analyst Tim Treadgold, “If the Russian central bank is secretly forming a silver stockpile, it’s possible that Russia could be doing just that.” He further warned that other banks complicit with Russia could do the same if allowed.
This potential change is particularly significant for the BRICS bloc. Other member states of the BRICS alliance include Brazil, Russia, India, China, and South Africa. Treadgold said that including in the BRICS’ blueprint is stockpiling gold to figure out how to circumvent the dollar. With gold prices hovering around an all-time high, this strategy has turned out to be prohibitively expensive. Silver has been historically seen as a substitute to gold. It might give more fuel to BRIC members’ fire in pursuing their jointist efforts to dollar-dump.
Even more remarkable has been the recent surge in investment demand for silver. In the first six months of 2025 combined, silver exchange-traded funds (ETFs) brought in more money than all of 2024. Clearly, this flurry indicates that investor interest in silver is once again booming. Some experts say this trend is a sign that something bigger is afoot and that the central banks are becoming active market players in silver. As Treadgold noted, silver’s dramatic surge is even more notable in juxtaposition with gold. He thinks this trend could be a sign that central banks are becoming more proactive in the silver market.
Silver is a tremendous enabler. As both an industrial commodity and a speculative financial asset, it has proved especially attractive to governments looking to insulate themselves from economic volatility. The Post makes a key point in doing so. Given this dual purpose, silver is an attractive option for governments seeking to insulate themselves from economic turmoil.
For much of history, silver has been considered a monetary metal. Reimagining the role of currency from past to present. One prominent example was when President Lyndon Johnson removed silver from U.S. coins in 1965. The silversmith’s nightmare was the Coinage Act of 1873, which stopped the free coinage of silver in the United States. This symbolic decision put the entire nation on a course toward gold standard adoption.
As Russia positions itself by accumulating silver, market participants will be keenly observing how this strategy unfolds and impacts global dynamics surrounding precious metals. As always, the silver market seems well poised for whatever’s next as investor sentiment continues to turn and geopolitical factors start to influence the markets.