Is Silver Now Starting to Catch Up to the Gold Price? On Thursday, at least, an ounce of the precious and industrial metal cost more than 36 US dollars for the first time in 13 years. And today, at the start of European trading, silver has climbed back above this mark after a brief setback!
According to market observers, the rapid rise is due to several factors: chart technical developments, improved fundamental outlook, and increasing interest from investors. For example, German Heraeus believes that Silver will now start to reduce the gap to its big brother gold, which has been on an upward trend for a long time. This suggests that momentum-driven investors are now shifting into silver, it was further stated.
By the way, we at Goldinvest.de had already reported at the end of April that silver might soon steal the show from gold…
Is Silver Now Closing the Gap?
According to data compiled by Bloomberg, exchange-traded funds backed by physical Silver (Silver ETFs) have recently recorded significant inflows. Accordingly, ETF silver holdings increased by 2.2 million ounces on Wednesday alone.
With the recent rally, the silver price has now gained nearly 25% since the beginning of the year, putting it just behind gold, which currently shows a 2025 performance of 28.2%. However, over the last 12 months, the gold price has risen by almost 43%, while silver has “only” achieved a gain of 20%.
Silver and gold often rise in parallel during times of geopolitical uncertainty, as many investors look for a safe haven for their capital. However, silver is also used in industry, for example in solar cells due to its high conductivity. According to recent data from the Silver Institute, the silver market is also expected to show a deficit again this year. Already in 2024, the estimated supply was about 15% below demand.
With the current price increase, the Gold/Silver Ratio – which determines how many ounces of silver are needed to buy one ounce of gold – falls to almost 94, the lowest level since early April when US President Donald Trump caused chaos in the precious metals markets with his “liberation day”. According to analysts, some investors might now turn to silver as a result, after it had long underperformed gold.
Interest in Silver Juniors Likely to Increase
A strong rise in the silver price – especially if it proves to be sustainable, which many experts and CEOs we speak to believe – is then likely to make silver juniors / explorers more interesting to investors on a broader scale. At Goldinvest.de, we observe several companies that could benefit from this development, including the silver royalty company Silver Crown Royalties (WKN A40GTS / CBOE SCRI), the silver explorers Silver47 Exploration (WKN A408EQ / TSXV AGA) and Summa Silver (WKN A2P4EE / TSXV SSLVR), which will merge shortly, but also Terra Balcanica Resources (WKN A40DA5 / CSE TERA) with their polymetallic, silver-heavy project in Bosnia. Also Cerro de Pasco Resources (WKN A2N7XK / TSXV CDPR)
