Metals Gaining Luster as Long-term Investments

Lately, we have observed significant volatility in the materials sector, particularly in metals, which warrants discussion. Essentially all metals — gold, silver, platinum, palladium, rhodium, tin, copper and raw steel — posted very strong performance in 2025.

Monetary metals, gold and silver, have been considered money and reliable stores of value for ages. In fact, J.P. Morgan once quipped that only gold is money, while everything else is credit. Traditionally, gold and silver are viewed as safe havens during periods of uncertainty, war, inflation, financial distress and sovereign credit or currency risk — all of which, to varying degrees, are present today.

Unlike gold, which has relatively little industrial use and is therefore rarely consumed, silver and other metals have significant industrial applications, including smartphones, computers, medical devices, solar panels and electric vehicles. In these uses, they are consumed rather than conserved.

We do not believe recent price action in these metals is being driven primarily by speculation, although speculation exists and has been drawn in by recent performance. Rather, underlying secular demand drivers appear to be at work, principally artificial intelligence and clean energy.

The energy required to power announced and anticipated AI infrastructure builds is substantial. Silver and copper, as the best conductors of electricity, will be required in large quantities. At the same time, the silver industry has experienced chronically low capital investment and has operated in a deficit for several years, with marginal demand met through global inventory drawdowns.

Many, if not most, AI data centers will also incorporate solar panels, for which silver is a key raw material. Further, Samsung is expected to commercialize the first silver-anode solid-state battery in 2027 for electric vehicles and has announced a two-year exclusive forward purchase agreement with a miner for its production.

In testing, this battery reached 80% charge and delivered a 600-mile range in under 10 minutes of charging. If these results translate to real-world performance, they would address two major barriers to EV adoption — charge time and range — potentially accelerating consumer adoption and creating a virtuous demand cycle for silver.

In summary, the fundamental drivers behind metals performance appear justified and likely to persist. However, as commodities, these investments will continue to exhibit considerable volatility.

Visit www.floridatrust.com for more information on our investment philosophy.

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About Florida Trust Wealth Management
Florida Trust Wealth Management is an independent, state-chartered trust company with more than $5.5 billion in assets under management. The firm provides family office and wealth management services, including investment management, trust administration and financial counsel to high-net-worth individuals, families, businesses, foundations and endowments. The firm focuses on absolute-return-oriented, performance-driven strategies.

Originally established in 2001, the company operated under its flagship name, The Sanibel Captiva Trust Company, for 25 years, including its divisions, The Naples Trust Company and The Tampa Bay Trust Company. Offices are located in Sanibel-Captiva, Fort Myers, Naples, Marco Island, Tampa, St. Petersburg, Belleair Bluffs and Tarpon Springs. floridatrust.com

Visit www.floridatrust.com for more information about our investment philosophy and how it may align with your investment strategy.

Edwin C. Ciskowski, MAcc, CPA, CTFA

SVP | Senior Portfolio Manager