With Gold Above $3,100/oz - What’s Next for Silver Prices?

On April 1, gold prices surged to a record-breaking $3,148 per ounce, marking a remarkable 17% rise since the beginning of 2025. This rally represents the yellow metal’s strongest quarterly performance since 1986, driven by heightened geopolitical tensions and growing fears of a renewed global trade war.

With gold stealing headlines, attention is now turning to silver – traditionally seen as gold’s “little brother.” Historically, the gold-to-silver ratio has hovered around 15:1, suggesting that strong movements in gold prices should also lift silver. If that ratio held true today, silver would be trading near $220 per ounce. Yet the current market price remains under $34, a stark divergence that has left investors scratching their heads.

So, What’s Behind this Massive Gap?

Unlike gold, which is primarily viewed as a store of value, silver bullion straddles two worlds: it is both a monetary asset and an essential industrial metal

Beyond its historic monetary role – most prominent during the silver standard period from the 16th to early 19th century – silver plays a critical role in modern technologies.

It is indispensable in electric vehicles, solar panels, and a range of green energy solutions. This dual demand profile makes silver uniquely positioned to benefit from both economic uncertainty and technological innovation.

Given the current disparity with historical norms, many analysts are suggesting that silver may be significantly undervalued. If silver were to even partially close the gap, the upside potential could be enormous. A threefold increase would push prices towards $100 an ounce – a move that would still reflect only a partial correction based on historical ratios and today’s gold price.

“Our forecast remains for a silver price of $300 per ounce within the next 5–10 years,”

commented Max Baklayan from Tavex.

“And judging by our expectations for gold – which have materialised much faster than anticipated – we may still be underestimating silver’s true potential.”

As gold bullion prices continues its meteoric rise, silver may be the next precious metal to watch closely with price moves and movements. The historical correlation, combined with growing industrial demand and a widening price gap, points to a potentially explosive future for silver investors.

Look at the live price charts here.

Key Takeaways

As gold continues to set new records, silver’s comparatively modest gains may not reflect its full potential. With a rich history as a monetary metal and an increasingly critical role in modern industry, silver stands at the intersection of economic resilience and technological progress.

The stark discrepancy between its current price and historical ratios suggests that silver could be significantly undervalued – offering a compelling opportunity for forward-looking investors. While no forecast is without risk, the conditions appear ripe for silver to shine in the years ahead.