We have been mentioning precious metals for some time now.
Silver continues to play catch up to gold.
AG buyable gap up:
SLV BGU:
Silver is widely considered undervalued relative to gold due to a persistent supply-demand imbalance, especially visible throughout 2025. The gold-to-silver ratio is currently near historic highs—close to 90–100:1—while its long-term average has been around 60:1, suggesting silver is priced cheaply when compared to gold.
Silver vs Gold Table
| Metal | 2025 Price | Supply Status | Gold/Silver Ratio | Historic Avg Ratio | Industrial Demand Growth | Central Bank Buying |
|---|
| Silver | $36–47/oz | 5th year deficit | ~90–100:1 | 60:1 | Very strong | Minimal |
| Gold | $1900–2300/oz | Record central bank buying | -- | -- | Limited | Strong |
Investment Implication
Market analysts broadly expect the gold-silver ratio to revert to more typical levels (closer to 60:1), which would imply significant appreciation for silver if these fundamentals persist. Industrial demand, green energy transition, and delayed responses in mining mean silver’s supply cannot quickly catch up, creating strong upward price pressure.
In summary, the ongoing supply-demand imbalance and high gold-silver ratio strongly suggest silver is undervalued relative to gold in 2025, with compelling arguments for continued upside if market dynamics persist.
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