The gold-silver ratio has fallen by about 7 percent in a week. While last week more than 64 ounces of silver were needed to buy one ounce of gold, that ratio is now around 59. This has reached the lowest level in three weeks.
The decline sends one clear message: silver is currently outperforming gold. The question is whether this is the start of a new strong phase for silver, or just a temporary move.
Silver is catching up with gold
The gold price is trading at around $5,180 per ounce and is about 3.4 percent higher than a week ago. At the same time, gold showed a slight pullback in the past 24 hours after previously testing the USD 5,200 mark.
Silver is around $87 an ounce. Measured over seven days, this is an increase of more than 10 percent. This stronger weekly performance explains the rapid decline in the gold-silver ratio.
When silver rises faster than gold, the ratio automatically falls. We have now seen this pattern for six trading days in a row.
Why this ratio is important
Investors often use the gold-silver ratio as a valuation metric. A high ratio means that silver is relatively cheap compared to gold. A falling ratio indicates that silver is gaining ground.
Historically, the ratio often falls in periods when two forces converge: rising industrial demand and increasing need for safe havens.
Silver has a unique position. It is both a defensive investment and an industrial metal used in solar panels, electronics and industrial applications, among other things. As economic expectations improve, silver benefits through industrial demand. In the event of geopolitical tensions, it can also benefit from safe haven flows.
Geopolitics and trade policy play a role
The current movement takes place against a complex background. Investors are following tensions surrounding Iran and the United States’ trade policy, including President Trump’s announced 10 percent global import tariff.
With increasing uncertainty, both gold and silver can rise. But silver can react more strongly in such a scenario, precisely because of the combination of defensive and industrial properties.
Comparison with 2025
Market observers see parallels with 2025. Even then, silver started to outperform gold, partly due to increasing demand and tightness on the supply side. The ratio at the time gradually declined before the market stabilized.
With the current ratio around 59, the question arises whether a similar phase will occur again.
Gold is still trading near record levels, having previously reached an all-time high of above $5,500. Silver is historically still below its old peaks, but closing the distance.
Source: https://newsbit.nl/zilver-stijgt-3x-harder-dan-goud-nederlanders-krijgen-gratis-e15-aan-zilver/
