Robert Kiyosaki, renowned author and financial educator, well known for his famous book Rich Dad Poor Dad, is a huge proponent of silver, along with gold and Bitcoin. In a recent post on X (formerly Twitter), Kiyosaki posted – Good News for people with not much money. The good news is that silver is the biggest investment bargain today. Gold has already hit all-time highs. And silver is still 50% below its all-time high. I believe silver will be 2X to $70 this year.”

Silver prices are holding steady and finding support at current levels. Over the past year, gold has increased by 42% while silver has increased by 21%.

Is silver looking cheap compared to gold? If one looks at the gold:silver ratio, silver does appear to be cheap.

The bullish outlook of silver rests a lot on the gold:silver ratio, which is currently at a high.

With gold at $3,333 and silver at $33, the gold:silver ratio is 101, much above the average ratio of 70:1. This means, either the gold price has to fall or the silver price has to move much higher from current levels.

Silver currently trades at $33, which is the same level as in October 2024. “Silver prices have given a breakout above $33(Rs 97,000), now the next target is $35 (Rs 1,00,000),” says Dr. Renisha Chainani, Head – Research at Augmont.

Factors at play

Silver demand is expected to remain stable at 1.20 billion ounces in 2025, while global supply is projected to grow by 3% to an 11-year high of 1.05 billion ounces, indicating a gap in supply, which is positive for silver prices.

The silver market, with a turnover of $30 billion annually, is small, causing supply shifts to significantly impact demand and price.

The increase in industrial activity and the rising interest in silver as an investment option are contributing factors to the rising price of silver. Silver is used in industrial activities more than gold.

Both gold and silver are considered safe haven assets during uncertain times. Studies in the past have shown that gold price moves up during recessionary periods and economic downturns, while for silver, an uptrend in economic activity boosts the price.

The steep rise in the Gold-Silver ratio reflects Silver’s much worse price performance than Gold. Also, Silver is displaying a divergence in the short term. While gold is up by 10% in one month, silver price is down by 1 percent in the same period.

In India, gold rate today is Rs 95,920 for 10 grams, while the silver rate today is Rs 98,220 for 1 kg. Both gold and silver are vulnerable to fluctuations in the current macroeconomic environment. Only time will tell whether the white metal continues to diverge from gold.

Also Read: Is the gold price rally losing steam after soaring 42% in a year?