(Kitco News) - Although silver has been unable to sustain gains above $40 an ounce, one fund manager says the precious metal has undeniable momentum, which could push prices back to their 2011 record highs.

In an interview with Kitco News, Nate Miller, Vice President of Product Development at Amplify ETFs, said that surging investment demand for silver has fueled significant growth. Amplify’s Junior Silver Miners ETF (NYSE: SILJ) has nearly doubled in size, with assets under management now valued at roughly $1.8 billion.

The firm has also added another ETF to its lineup: the Amplify SILJ Covered Call ETF (NYSE: SLJY), which invests in call options on a portfolio of junior silver mining companies. SLJY’s strategy involves selling out-of-the-money call options—contracts set at prices above the current market value—aiming to generate income from market volatility in those securities.

The launch of Amplify’s new options ETF comes as silver has posted significant gains, with prices up more than 30% so far this year. In recent months, silver has also managed to outperform gold, with the gold/silver ratio currently trading above 88, down from April’s highs above 104.

“Silver has rallied this year, and we think it still has more room to run,” Miller said. “We continue to see two key factors providing strong tailwinds for silver this year.”

Miller noted that silver is benefiting both as an industrial metal and as a monetary metal. He explained that the global green energy transition is driving demand for solar energy, with silver remaining a critical element in photovoltaic solar panels.

According to estimates from the Silver Institute, the solar sector is expected to consume a record 140 million ounces of silver this year.

Miller added that the electrification of the U.S. economy, along with growing demand for new data centers, should create solid long-term demand for silver.

At the same time, growing economic uncertainty and the ongoing global trade war are pushing inflationary pressures higher. This, he said, has renewed investment demand for silver as investors look to preserve their purchasing power.

“Silver has intrinsic value that investors are starting to recognize, and we don’t see that shifting any time soon,” Miller said.

He also pointed to bullish technical factors, noting that the gold/silver ratio remains elevated compared to the historical average of around 65.

“If the ratio were to normalize—assuming the price of gold stays where it is—silver would have to be around $50 to $52 an ounce,” he said. “Even with the current rally, we still see tremendous upside for silver.”

In a separate interview with Kitco News, Christian Magoon, CEO of Amplify, said it’s an exciting time to be watching silver as the price hovers at critical resistance levels.

“If the price can get above $39 an ounce, we’ll get to see what true price discovery looks like,” he said.

Miller added that Amplify’s new silver options ETF offers an exciting opportunity because it provides investors with a yield on a traditionally non-yielding precious metal. According to the firm, SLJY seeks to generate an annualized option premium income of 18%.

“Because of silver’s rally this year, investors are looking at it and searching for a reason to buy—but they often can’t justify it because there’s no yield,” Miller said. “Our hope is that this creates an opportunity for investors, providing diversification while also adding income to a portfolio.”