The gold-silver ratio has reached 100 – meaning you need 100 ounces of silver to buy one ounce of gold. This is far above the 25-year average of 68, signaling that silver is historically undervalued.
Why the gap? Gold hit record highs above $3,500 as investors sought safety amid economic uncertainty. Silver lagged behind because it’s not just a precious metal – it’s also widely used in technology and manufacturing, making it vulnerable to trade tensions and economic slowdowns.
This creates both risk and opportunity. Silver is more volatile than gold, but it’s facing its fifth straight year of supply shortage. Many experts believe current prices offer a buying opportunity. If the economy improves and trade tensions ease, silver could outperform gold significantly, potentially bringing the ratio back to normal levels.
For investors with patience and a medium to long-term outlook, today’s “undervalued” silver might be tomorrow’s winner.