Silver Ready to Rise
In the face of mounting uncertainty, gold has surged to record highs, with silver appearing to lag behind. But history shows silver often plays catch-up after gold rallies.And signs are mounting that silver’s next big move could be just around the corner, presenting an opportunity for those looking to protect their savings with physical precious metals.
Silver’s Track Record of Following Gold
Gold has hit record highs above $3,500 an ounce and is outperforming stocks. It’s risen 41% over the past 12 months. Meanwhile, silver has underperformed gold but still delivered strong returns. Over the past year, silver has risen about 23%, beating the S&P 500’s 6% return over the same period.1
Silver rallies often trail gold’s surges by a few months. And historical data suggests that once silver starts moving, it can move fast. During the COVID panic of 2020, the gold/silver ratio hit a historic extreme of 113. Twelve months later, silver prices had soared 73%, compared to gold’s 8% rise. Similarly, after the 2008 financial crisis, silver rose 81% over the next 12 months while gold rose 44%.2
If today’s global trade tensions mirror past crises, silver could be poised to outperform gold by three times or more.
The Gold/Silver Ratio Signals Opportunity
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One key metric analysts are watching closely is the gold/silver ratio. That’s the number of ounces of silver it takes to buy one ounce of gold. Recently, that ratio stood at 98, down slightly from 100 earlier in the week. Historically, the 30-year average is 68, meaning silver remains deeply undervalued relative to gold.4
Every time the ratio climbs significantly above average, it signals an opportunity for silver to catch up. The last time the ratio breached 100, silver delivered tremendous gains. If history repeats, today’s extreme levels suggest silver could be ready for a major move higher.
Dual Demand: Investment and Industry
Silver benefits from both safe-haven investment appeal and robust industrial demand. Like gold, silver attracts investors during inflationary periods and times of crisis. But unlike gold, silver is also critical for key industries, from electronics to solar panels and green technologies.
Over 60% of silver’s demand now comes from industrial use, and that share is steadily rising. Recession fears and global trade uncertainty are currently dampening industrial demand and sentiment. Yet silver’s unique dual demand positions it well for a rebound as economies recover.
Sentiment Gap Between Gold and Silver
Silver sentiment recently dropped to its lowest level in more than a decade. Silver sentiment measures whether investors are mostly buying (positive sentiment) or selling (negative sentiment) silver, based on their outlook for its future price. Gold sentiment remains extremely high. This wide gap is historically rare. It is often a strong signal that silver could be on the verge of outperformance.
When silver is considered “oversold”, as it has been recently, it means that too many investors have sold the metal too quickly. Thereby pushing prices lower than what fundamentals like supply and demand would justify. This often suggests that selling pressure may be exhausted. And the stage is set for a potential price bounce.
Silver Analysts Predict Big Moves Ahead
According to the World Silver Survey 2025 by the Silver Institute, “A high gold-to-silver ratio should help silver, as some investors may view the white metal as undervalued. Also, expected US interest rate cuts, along with elevated economic and geopolitical uncertainties, should continue to fuel gold and silver investment.”5
Analysts believe that once silver crosses the $36 mark, it could quickly accelerate toward $45–$50. Peter Krauth is the editor of Silver Stock Investor. He notes that silver has posted four consecutive years of global supply deficits. It’s averaging a 200-million-ounce shortage every year. These shortfalls are not being filled not by new mining production. But instead by drawing down inventories from exchanges like LBMA and COMEX.
With demand rising and supply shrinking, Krauth predicts $50 silver by next year. He adds, “Some experts are calling this the biggest technical breakout setup in modern history. If silver breaks $50 decisively, it could go to $70, $80, or even $100 in short order.” He even said, “I think we’ll see $300 silver eventually. Eric Sprott talks about $250 to $500. I’m happy to be in the same camp.”6
Timing the Opportunity
From a risk-versus-reward standpoint, silver could present a vastly better opportunity than even gold. That’s if your investment horizon extends beyond just a few months.
History shows that when the gold bull market peaked in 2011, the gold/silver ratio fell to 32. If gold rises to $5,000, silver could rise to $150 an ounce following a similar pattern.7
Buying silver at today’s lower prices could offer tremendous upside potential. Especially when considering that industrial demand is expected to roar back when the economy improves. And because silver remains an easy entry into the precious metals market, people can buy a little now and increase their allocation over time, buying dips as they occur.
Conclusion
Silver, along with gold, held in a Gold IRA can offer long-term retirement protection. With silver looking poised for a major rally, now may be the ideal time to diversify and strengthen your portfolio.
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