Silver is showing signs of catching up with gold gains. Silver reached its highest price in 13 years after crossing $35 per ounce, the highest level since February 2012. Silver shows no signs of stopping now as it trades over $36 on Friday.
Silver is up 23% as against gold’s return of 46% over the last year. Silver for July delivery also settled at $35.81 an ounce Thursday on Comex, the highest most-active contract finish since Feb. 28, 2012. It remains to be seen if it is a breakout on silver that can take the price higher.
What has triggered a sudden spike in silver price remains unanswered as of now. Most market and industry experts are purely calling it ‘ratio trading’.
The gold-silver ratio falling below 100 could have triggered the silver price spike.
The long-term average for the gold-silver ratio has been around 70. For a long time, thanks to the bull run in gold, the ratio has stayed around 100 since January 2025.
Today, the gold-silver ratio stands at 93.33 with the gold price at $3,360 and the silver at $36. The big slump in the gold-silver ratio seems to have triggered the bull run in silver now.
To get the ratio back to its long-term average of 70, the silver price must rise to $48, while the gold price remains unchanged. Alternatively, the price of gold must be correct.
The price movement in silver is currently on the investor side. If the physical investor movement of silver shows any increase, it could propel silver prices higher.
The small silver market, with an annual turnover of $30 billion, can have a major impact on prices even if demand changes slightly.
For the fifth year in a row, silver demand is predicted to exceed supply in 2025. A global supply of 1.05 billion ounces is matched by a demand of 1.20 billion ounces.
With rising industrial and investment demand, the bullish sentiments on silver could be sustained. However, market experts also warn that historically, silver is prone to bouts of volatility.
Weak US economic data and a dovish Federal Reserve outlook have fueled safe-haven demand for the precious metals, both gold and silver.
At least two rate cuts are expected now from the US Fed after the US economy showed signs of weakening. Lower rates and a weaker dollar are good for gold and silver to shine. Therefore, silver seems to be playing a catch-up game after the gold rush.
Robert Kiyosaki, a renowned author and financial educator best known for his book Rich Dad Poor Dad, is a strong supporter of silver, as well as gold and Bitcoin. In his X post after Silver hit $35 an ounce, he writes, “I believe silver is the best bargain today. I believe silver will 2X…possibly $70 this year.”
Kiyosaki believes silver will double from its current price of $36 to $70 this year. After gold hit an all-time high of $3,500 on April 22, Kiyosaki posted a tweet where he wrote, “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.”
Also Read: Is silver a better bet than gold today?
Silver price today in India is Rs 1,05,930 per kg after crossing the Rs 1 lakh mark on June 5. On Thursday, the white metal rebounded by Rs 2,000 to reach a new high of Rs 1,04,570 per kilogram in local markets, continuing its winning streak for the fourth consecutive session.