Despite gold prices hitting record highs, silver has lagged behind. Currently trading around $33 per ounce, silver remains volatile, but attention toward the metal is rising amid broader market uncertainties.
Recent shifts in trade policy have disrupted traditional asset correlations. Still, silver is seen by many as having significant upside potential. Projections suggest silver could reach $40 by summer and may target $50 by year-end.
The gold-to-silver ratio remains unusually high, exceeding 100, well above the historical norm of 60–70. This dislocation has weighed on silver’s relative performance but may set the stage for a future rally as the gap narrows.
Even if the ratio doesn’t normalize soon, silver is expected to benefit from broader trends. If gold continues its push toward $3,500 or even $5,000, silver would likely rally alongside, driven by overall demand for precious metals.
Price action indicates the possibility of a strong upward move in the coming months. A climb to $40 by mid-year appears realistic, with potential for $50 by September or year-end, even without a full reversion of gold-silver spreads.
However, silver’s physical characteristics pose unique challenges. Compared to gold, silver is heavier and costlier to transport, complicating logistics and reducing physical liquidity. Additionally, silver’s industrial demand links its price more closely to manufacturing activity and global trade flows.
Many investors remain cautious, waiting for clearer bullish signals before entering the market. This cautiousness has restrained immediate gains, but a strong breakout could attract rapid inflows once key technical levels are breached.
On Monday, silver prices edged lower, last trading at $33.06 per ounce, down 0.12% on the day. Meanwhile, gold held its high ground, keeping the gold-silver ratio above 100.
Overall, despite near-term fluctuations, silver retains strong medium- to long-term upside potential, especially in a global environment favoring safe-haven assets and higher precious metal prices.
