Gold has recently hit record highs, up 41% over the past year and 113% this decade, outperforming the S&P 500’s 78% return. Historical patterns suggest silver may soon follow and potentially outperform gold.
Silver typically lags gold during market downturns but often outshines it during recoveries due to its dual role as both a precious metal and industrial commodity used in electronics and solar energy. The current gold-silver ratio of 98:1 far exceeds the 30-year average of 68:1, indicating silver may be undervalued.
This pattern has consistently repeated after previous market crises. Following the 2020 COVID panic, silver surged 73% while gold rose just 8%. After the 2008 financial crisis, silver jumped 81% versus gold’s 44%. Despite silver’s vulnerability to economic downturns due to its industrial applications, history shows it typically rebounds strongly as recovery takes hold.