Gold silver prices: Silver’s recent selloff may have grabbed headlines, but market watchers say the real story lies in the gold-to-silver ratio, which has fallen to one of its lowest levels in years after silver’s dramatic run-up, as per a report.

Silver Prices Today Falls Sharply After Crossing $100 an Ounce: Silver Outperforms Gold Despite Recent Selloff

The metal suffered its biggest drop in years on Friday, shortly after it crossed the $100-per-ounce mark earlier this year. Even with that pullback, silver has more than tripled in value over the past year, far outpacing gold, which has gained roughly 90% over the same period, as per a Yahoo Finance report.

Gold-to-Silver Ratio Hits One of Its Lowest Levels in Years

That imbalance has pushed the gold-to-silver ratio, a key metric that measures how many ounces of silver are needed to equal the price of one ounce of gold, to a new low. According to market experts, the ratio can offer important clues about whether silver is overextended or still undervalued, as per the Yahoo Finance report.

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Why the Gold-to-Silver Ratio Matters for Investors

Chris Mancini, associate portfolio manager of the Gabelli Gold Fund, said “The gold-silver ratio is 48 compared to a long-term average of around 65 and a low of 30,” adding, “If the ratio goes down to its low of 30, that would mean that silver would be $170 per ounce, given $5,100 per ounce gold,” as quoted by Yahoo Finance.

What’s Driving the Shift in the Gold-to-Silver Ratio

Analysts say the shift in the ratio reflects broader macroeconomic forces rather than silver alone. Silver’s surge over the past year has been driven by a move away from dollar-based assets, rising geopolitical tensions, and mounting economic uncertainty.

Jeffrey Christian, managing partner of CPM Group and a longtime precious-metals market expert, explained that, “It’s not about silver, it’s about broader economic and political conditions,” as quoted by Yahoo Finance. He pointed to growing concerns among economists about weakening labor markets, persistent inflation, and the effects of tariffs and trade restrictions in both the US and the global economy.

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Why Investors Turn to Gold and Silver During Market Uncertainty

During periods of uncertainty, investors often turn to precious metals like gold and silver as hedges against inflation and market volatility. These assets are frequently seen as safe havens because they tend to behave differently from stocks and bonds.

Industrial Demand and Global Silver Supply Shortage

Silver’s role goes beyond investment demand. Unlike gold, it has widespread industrial uses and is a key component in technologies such as solar panels, smartphones, televisions, semiconductors, and AI data centers. That growing industrial demand has contributed to a global supply shortage, adding pressure to prices and influencing the gold-to-silver ratio.

Silver Price Prediction: Analysts Forecast Higher Silver Prices Despite Volatility

Despite the metal’s recent volatility, some analysts expect silver prices to rise further this year. Peter Reagan, financial market strategist at precious-metals IRA company Birch Gold Group, said silver prices would increase “due to the physical supply constraints, robust demand for industrial purposes, and the rising interest of investors owing to economic uncertainty,” as quoted by Yahoo Finance.

However, He cautioned that whether now is the right time to invest depends on an individual’s financial goals and risk tolerance.

Is Silver Still Undervalued Compared to Gold

Reagan pointed out that, “Silver has historically been more volatile than gold,” adding, "Gold is perceived to be stable, and silver has the potential to offer higher returns but with higher risk due to its industrial demand," as quoted by Yahoo Finance.

FAQs

What is the gold-to-silver ratio?
It measures how many ounces of silver equal the price of one ounce of gold.

Why has silver outperformed gold over the past year?
Silver prices have tripled, driven by economic uncertainty and strong demand.