Why Family Offices Are Looking at Silver Differently
- Jun 4
- 4 min read
Reflections from Conversations Around the Table, Liz Priestman
Originally inspired by an article published by Liz Priestman in The International Family Offices Journal
Over the past several years, I've had the privilege of moderating private family office discussions across Europe, bringing together principals, chief investment officers and sector specialists to explore industries shaping the future.
Those conversations have covered everything from healthcare and artificial intelligence to defence, energy and critical minerals.
One topic, however, has evolved more quietly than most.
Silver.
For many years, discussions around precious metals almost always began and ended with gold. Gold has earned its place over centuries as a store of value, a hedge against monetary uncertainty and an important source of portfolio resilience. Its role is well understood and rarely debated.
Yet increasingly, I've noticed another question emerging.
It rarely comes during the formal presentations.
Instead, it tends to surface over coffee, during lunch, or in the conversations that continue long after the meeting has officially ended.
"If we already understand gold's role, what should we be thinking about when it comes to silver?"
It is an interesting question because silver occupies a rather unusual position.
Unlike gold, silver lives in two very different worlds.
It has a long history as a monetary metal, often moving alongside gold during periods of economic uncertainty. At the same time, it has become an increasingly important industrial metal, essential to technologies driving global electrification, renewable energy, advanced electronics and artificial intelligence infrastructure.
Few metals sit at the intersection of these two demand drivers.
That dual role is one of the reasons family offices have become increasingly interested.
Many families think in decades rather than quarters. They are naturally drawn to long-term structural themes rather than short-term market movements, and silver increasingly finds itself at the centre of several of those themes.
The conversation, however, extends well beyond demand.
Supply has remained remarkably constrained.
Unlike gold, much of the world's silver is produced as a by-product of mining other metals, meaning production decisions are often driven by copper, lead or zinc rather than silver itself. At the same time, industrial demand continues to grow as economies electrify and new technologies emerge.
Those dynamics have quietly created persistent supply deficits over several consecutive years.
For many long-term investors, that raises an important question.
What happens when growing industrial demand begins to coincide with renewed investment demand?
While no one can predict markets with certainty, it is exactly the kind of structural question family offices enjoy exploring.While preparing my original article for The International Family Offices Journal,
I reached out to Pierre Lassonde, Co-founder of Franco-Nevada and one of the mining industry’s most respected operators and investors, to ask how he viewed silver’s outlook and its potential role within a multi-generational portfolio.
His response introduced an important counterpoint to the broader silver thesis:
“For as long as I have been in this business, and that would be over 50 years, silver has been referred to as ‘The Poor Man’s Gold.’
In 2022, gold was roughly US$1,500 per ounce and silver US$15 per ounce, for a ratio of 100:1. Today, gold is US$5,000 and silver US$80, for a ratio of 60:1. Given that almost two-thirds of silver is used in industrial applications, thrifting will become a very strong headwind for future price appreciation. We already see the solar panel industry switching from silver to copper alloys, and they are the largest silver users.”
Pierre’s perspective is particularly valuable because it adds nuance to the discussion. Silver’s industrial relevance is often presented solely as a source of structural demand, but sustained higher prices can also encourage manufacturers to reduce usage, redesign products or adopt substitute materials.
For family offices, this is precisely why thoughtful analysis matters. The investment case for silver should not rest on a single narrative. It requires consideration of both the forces supporting demand and the ways industry may adapt as prices rise.
Perhaps the most interesting aspect of these discussions is that they rarely centre on price.
Instead, families ask different questions.
What is driving long-term demand?
How scarce is the underlying resource?
Which management teams have demonstrated the discipline to build enduring businesses?
How should silver complement, rather than replace, gold within a diversified portfolio?
These are thoughtful, patient conversations.
They are rarely about speculation.
They are about understanding how long-term trends may reshape markets over many years.
Many of the ideas in this article have emerged not from research alone, but from dozens of conversations with family offices, mining executives, analysts and investors over the past several years.
That is one of the reasons I continue to enjoy moderating these gatherings.
The presentations themselves are always informative, but some of the most valuable insights emerge once the slides have disappeared and people begin exchanging perspectives around the table.
It is in those quieter conversations that genuine curiosity often reveals itself.
Whether discussing precious metals, healthcare, defence or artificial intelligence, I continue to be reminded that family offices approach investing differently.
They are not simply looking for the next opportunity.
They are trying to understand the forces that will matter for the next generation.
Silver's story is still unfolding.
Its future will be shaped by technology, industrial demand, government policy and capital allocation.
Whether it ultimately proves to be one of the defining strategic metals of the coming decade remains to be seen.
What is already clear, however, is that family offices are asking better questions than they were just a few years ago.
For me, that has been one of the most interesting developments of all.
This article expands on themes first explored by Liz Priestman in The International Family Offices Journal, published by Globe Law and Business. I am grateful to the editorial team for the opportunity to contribute to the publication. You can learn more about the journal by visiting The International Family Offices Journal and following Globe Law and Business Ltd.
