Silver Prices Surge
After years of waiting in the wings, silver is finally having its moment. Prices have surged above $35 per ounce for the first time in over a decade, and excitement is rippling across the market. In fact, spot silver recently traded at $35.76, its highest level in 13 years. That is an 8.7% rise in just one week. Offering a more affordable entry into precious metals than gold, now may be an ideal buying opportunity.1
This dramatic breakout follows months of silver hovering below major resistance levels. According to Kitco Senior Market Strategist Jim Wyckoff, this rally “has been brewing for a while and may have more upside.” In his words: “Right now, for silver, it’s very likely ‘Katie, bar the door’ to the upside.”2
The Gold/Silver Ratio Suggests Room to Grow
One key metric analysts are watching closely is the gold/silver ratio: the number of ounces of silver it takes to equal the price of gold. While the climb in silver prices has started to outpace the rise in gold prices, the ratio is still hovering around 100. For reference, the historical average is only 60.
What does that mean? If silver went back to its historical price compared to gold, then it has a lot of room to rise. Many analysts believe silver could soon test $40, with the long-term target being the all-time high of $50.36, set in January 1980.3
Christopher Lewis is Market Strategist at FXEmpire. He noted that the last two times silver broke above $35, it made a strong move toward $50. “Whether or not that happens this time remains to be seen,” he said, “but clearly this is a market that’s very bullish.”4
The $50 Ceiling Is in Sight
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TD Securities, which has been bullish on silver since last fall, sees the recent move as a pivotal moment. The firm points out that the last time silver broke through $35, it took less than six weeks to hit $50.6
Fueling this surge is more than just technical optimism. According to TD’s analysts, physical silver demand is using up available supply at a rapid pace. If large institutional investors continue buying ETFs that hold physical silver, the dwindling supply will shrink. And push prices up even faster.
Tight Supply and Rising Demand
According to the Silver Institute’s 2025 forecast, the silver market is expected to post its fourth straight annual supply deficit. Demand is projected to reach 1.148 billion ounces. While total supply is only expected to increase slightly, just 1.5%, due to rising mine output. That leaves a projected deficit of 117 million ounces.
The reason for the deficit? Growing industrial demand from sectors like electronics, automotive manufacturing, and solar technology. Silver’s role in these technologies means that even a slight disruption in supply, or increase in demand, can create significant price swings.
As Maria Smirnova from Sprott Asset Management put it: “If the technical move catalyzes physical investor buying, it can take silver much higher very quickly.” In other words, if enough folks start buying real silver because of this price jump, it could send prices soaring in no time.7
Global Uncertainty Adds Fuel to the Fire
Beyond fundamentals and technical indicators, macroeconomic factors are also creating a favorable environment for silver. Ongoing geopolitical tensions, such as the U.S.-China trade conflict, unrest in the Middle East, and the war in Ukraine, have contributed to a steady flow of safe-haven demand into both gold and silver.
Meanwhile, the U.S. dollar index has recently dropped to a six-week low, largely due to weak economic data and concerns over rising U.S. debt levels. A weakening dollar typically supports higher silver prices. As precious metals are priced in dollars and therefore become cheaper for foreign buyers.
Add to that rising crude oil prices, which often drives all commodity prices higher, and you have a powerful cocktail of forces working in silver’s favor.
A Window of Opportunity for Buyers
With silver sitting at just under $36 and still nearly $15 below its all-time high, many analysts see the current price point as a value-buying opportunity. The last time we saw silver at these levels, it didn’t stay here long.
If you’ve been waiting for the right time to diversify your portfolio with precious metals, now may be the moment. The technical breakout, tightening supply, rising demand, and broader economic uncertainty all point toward one conclusion: silver is positioned for further upside.
Conclusion
American Hartford Gold makes it easy to protect your financial future with silver, whether you’re interested in physical coins, bars, or a precious metals IRA. Our team is here to help you take advantage of today’s market conditions, but don’t wait for silver to hit $50 before you act. The window of opportunity is open, but it may not stay that way for long.
