As we approach the end of Q1, gold has already started 2025 breaking records and seeming to stabilize and hold above the crucial $3,000 an ounce mark. But how has silver fared in the first few months of 2025?
Silver is up 6.3% so far in March. Silver took a step back, losing 2.4% in February after adding 10% in January, so with March's gains, we're looking at a roughly 13% gain so far for 2025. Remember, gains are rarely linear in a bull market.
Make no mistake... silver is just getting started.
Since last year, we've been trying to get the word out what an incredible opportunity there is for profit with silver in this current bull market. Silver rose 21% in 2024, and looks set to outpace that significantly if silver's performance in Q1 is any indication. Silver is strutting towards an all-time high of $50 an ounce. But at around $33 today, there's plenty of time to get in as silver starts to gain.
Analysts at major financial institutions are predicting silver will reach $38-50 by year's end, with an even higher peak over the next few years.
What's driving the spot price of silver?
The current rally in silver is driven by the record-breaking rally in gold prices, as the price movement of gold is often the rising tide that lifts all precious metals. Like gold, silver is perceived as a safe haven asset in this environment of continuing global geopolitical tensions and economic uncertainties. However, unlike gold, silver's essential role in electronics manufacturing and renewable energy technologies means that there is even stronger industrial demand.
Many investors are keeping an eye on the Gold-Silver Ratio, tracking the number of ounces of silver it takes to buy one ounce of gold. At 91 to 1, the ratio is historically elevated, suggesting that both gold and silver have a long way to go before they peak. Silver tends to outperform gold in a bull market, but not until the later stages, at which point the ratio reverts towards the long-term average.
Taking all these factors into consideration, as well as surprisingly low premiums on bullion products as demand has not yet caught up with the rising spot prices, there is an excellent opportunity to buy silver well in this market.
