Silver is shining like a bright star in 2025. Over the last 1-year, silver is up 15% and currently trades at $33. The big jump in silver price has come in the last five years.

Over the last 10 years (since 2015), the CAGR for silver is 9%, while over the last 5 years, the CAGR is 18%. This was because between 2015 and 2020, silver moved in a close range of $14 to $19. The big spike in silver prices started in April 2020 when the price jumped from $14 to reach $28 by August 2020.

Thereafter, till October 2022, the silver price slumped to levels of $18. Since then, silver is back in the fast lane and is up by 77% from the lows of October 2022.

Incidentally, the silver price is far from the all-time high levels. On January 17, 1980, Silver clocked an all-time high price of US$49.95 per ounce, while much later in April 2011, silver hit US$47.94.

Will the silver price go up more from current levels? To touch the milestone figure of $50 and create a new all-time high, silver has to jump 56% from the current level of $33.

The majority of the forces driving the price of silver are identical to those driving the price of gold. For the first time in history, Gold currently trades around $3,300, up by 40% over the last 1-year. The gold rate today in India is Rs. 94,330.

Trump tariffs and geopolitical tensions are causing high demand for gold and silver. Gold is experiencing significant growth amid uncertainty surrounding US trade policy, fiscal policy, geopolitics, and a global growth slowdown leading to a US recession.

There’s an additional factor in favour of silver, a strong industrial demand from new age industries like EVs and solar energy, causing silver prices to rise in 2025.

The silver market, with a turnover of $30 billion annually, is small, causing even slight supply changes to significantly impact demand and pricing.

Silver’s demand is expected to exceed supply in 2025, with a demand of 1.20 billion ounces and a global supply of 1.05 billion ounces. This discrepancy is expected to drive up silver prices for the fifth consecutive year.

Also Read: Gold price surpass $3,300 for the first time in history

Gold: Silver ratio

But, here’s the most tracked indicator by the market – the Gold: Silver ratio.

The ‘gold-silver ratio’ is a frequently monitored metric that measures how many ounces of silver are required to purchase one ounce of gold. In the late 1980s, the gold-to-silver ratio was 70:1.

Today, in April 2025, the Gold: Silver ratio is 100:1 as gold trades at $3,300 and silver at $33.

Also Read – Gold Price Prediction: Gold expected to post 71% return in 2025

If the gold-silver ratio is to be believed, either the silver price has to go up or the gold price has to fall. The likelihood of the gold price seeing a significant fall in 2025 is remote. That makes a case for the silver price to move higher from current levels.

So far in 2025, gold and silver have outperformed equities. Looks like silver is a sleeping giant with the price stuck around $32 since October 2024. Will Silver sprint ahead of gold? It remains to be seen.

Also Read – Silver, the New Gold: What is behind the shiny metal’s record-breaking rally?