Why Silver Prices Are Set to Rise – The Tides Are Turning

Apr 20

2 min read

For years, silver has puzzled investors. Despite its essential role in modern industry and a long-standing history as a form of money, the metal has lagged behind expectations—particularly when compared to its more illustrious cousin, gold. But what if this trend is about to reverse?

We believe it is. And here’s why.

A Misunderstood Metal: Silver’s Dual Identity

Silver is arguably the most misunderstood of all the precious metals. Unlike gold, which is widely recognized and held as a monetary asset, silver wears two hats: it is both a monetary metal and an industrial workhorse.

However, over the past few years, the market has priced silver almost exclusively as an industrial metal, ignoring its monetary heritage. The result? A suppressed price that’s failed to reflect growing macroeconomic risks or monetary debasement.

Decoupled from Gold, but Not for Long

The gold-to-silver ratio—a key metric that compares how many ounces of silver it takes to buy one ounce of gold—has exceeded 100:1 at times, a level rarely seen in history. Such extremes tend not to last. Historically, this ratio has averaged around 50–60, and when it swings too far in one direction, it often snaps back violently.

That snapback may be coming soon.

What Held Silver Back?

One of the major drags on silver in recent years has been global economic uncertainty, driven in large part by trade tensions and protectionist policies. Former President Trump’s tariff policies, for example, rattled global trade and indirectly hurt industrial demand for commodities like silver and copper.

Following Trump’s so-called “liberation day,” silver prices were hammered—falling by 15% in just four trading days, despite ongoing supply constraints. The market, clearly, was treating silver as a proxy for global industrial activity—not as a store of value.

What’s Changing Now?

The landscape is shifting—and fast.

China’s Policy Pivot: China, the world’s manufacturing hub and a major driver of global commodity demand, has recently shifted its policies to stimulate exports and revive industrial activity. This renewed demand is pushing silver prices higher.
Physical Demand is Outstripping Supply: The global supply of silver is under immense pressure. Mines are struggling to keep up, and recycling cannot fill the gap. With supply tight and demand rising, prices are being forced higher.
Silver’s Role in Green Technologies: From solar panels to electric vehicles, silver is a cornerstone metal in the green revolution. As climate initiatives accelerate worldwide, silver demand is poised for exponential growth.
Monetary Realization is Brewing: As fiat currencies continue to be devalued through inflationary policies, investors are beginning to rediscover silver’s historical role as real money. This shift in perception could ignite a significant revaluation.

Conclusion: Silver’s Moment Is Approaching

Silver’s underperformance has been frustrating, but it has also created a historic opportunity. The market has failed to price in silver’s monetary characteristics, its tightening supply, and its critical role in future technologies.

But the fundamentals are catching up with the price.

We believe the long-awaited silver breakout is coming, and those who understand the forces at play—and position themselves accordingly—stand to benefit greatly.