Silver has surged far more than gold and looks "stretched," but strong industrial use could keep it supported, exchange-traded funds provider ProShares said in a note Friday.

Factors like geopolitical risk, easier monetary policy, and inflation have supported precious metals overall, however, silver's rise has been particularly strong, raising questions about its drivers and potential constraints, ProShares strategists said.

Silver prices are up more than 140% since late July, compared with about 40% for gold, pushing valuations well above recent averages. The silver-to-gold price ratio has climbed to a multi-year high, which could prompt some investors to expect prices to ease, the strategists said.

They added that silver is different from traditional safe-haven metals. Its heavy use in industries such as electronics, solar power, and electrification could continue to support demand even if geopolitical tensions ease, as long as global growth remains solid.

"Overall, silver continues to be driven by both macro sentiment and real-economy demand, but its price behavior often proves sensitive to changes in either, so investors should keep a close eye on any developments," they said.

Price: 90.41, Change: +3.28, Percent Change: +3.76