When the price of gold broke through $3,000 per ounce for the first time a month ago, silver prices close to $35, some analysts pointed out that silver and gold prices will rise to $50 per ounce and $3,500 in 2025, respectively.
This week, the price of gold has broken through the $3500, hitting a new record high, while the price of silver is still far from $50. As of Wednesday’s (23 April) close, the gold-to-silver ratio reached a three-year high of 105.77, while the historical average gold-to-silver ratio is around 60.
Mike McGlone, senior analyst at Bloomberg Market Intelligence, said gold has outperformed silver since Trump’s election win last year, and a gold-to-silver ratio above 100 signals an impending correction, but it looks like gold strength and silver weakness will continue for a while longer as the deterioration in the outlook for global trade weakens industrial demand for silver.
Ole Hansen, head of commodities strategy at Saxo Bank, on the other hand, sees silver prices potentially rising to $40 an ounce this year, as the ongoing green energy transition remains relatively recession-proof.
Hansen expects silver to experience another supply shortage in 2025, which would be the fifth consecutive year of supply shortages. The rally in gold will eventually spark investor interest in buying silver.
Last week, the U.S. Silver Institute released its Silver Survey 2025 report, which showed that the silver market is expected to experience a deficit of 117 million ounces this year.
In an interview with Kitco News, Philip Newman, managing director of Metals Focus, said that the triple-digit gold-to-silver ratio is unsustainable, and that the ratio must be lowered. If it were lowered to 80 or 75, the silver price would be very close to $40.
Florian Grummes, managing director of Midas Touch Consulting, said silver could show signs of recovery in the next few weeks. By this summer, silver could touch $40 – $50 per ounce.
Grummes believes that the current gold/silver ratio is above 100, which is very unreasonable. Gold and silver reserves on the earth are 10:1 and production is 7 to 1. Most importantly, once the price of silver breaks through $50, the momentum could drive prices to $90 to $100.
Earlier this year, David Morgan, founder and author of The Morgan Report, noted that the price of silver could reach $50 per ounce by 2025, with $33 being the key resistance level.
Source: Nai500
