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Mutual Fund investments are subject to market risks, read all scheme related documents carefully. DSPAM 2024

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Can Silver Get Some Gold Dust?

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DSP

May 21, 2025 3 mins

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Summary

Gold’s been shining, but is silver about to steal the spotlight? With rising demand, tight supply, and a gold-to-silver ratio at historic highs, 2025 could be silver’s year. Is a breakout brewing? Dive into the data and decide for yourself.

Right now, silver might be poised for a major breakout.

Both gold and silver have seen good growth over the last 10-odd years. From ~$1,070 per troy ounce in 2015, gold had roughly tripled in price to ~$3,300 by April 2025.

As for silver, from a price of ~$14 per troy ounce in 2015, it had more than doubled to ~$32 by April 2025.

But when you compare their current prices to their prices in 2011, it becomes clear that the performances of these two metals have diverged sharply.

In August 2011, silver reached $45 per troy ounce, while gold was close to $1,900.

This means that silver is still far from beating its 2011 high, while gold has left its 2011 high in the dust.

As can be seen below*, due to this divergence, the gold-to-silver ratio is close to a post-COVID high of 100, which means it is significantly in favour of silver.

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But that’s not all: there are several more signs silver could do exceptionally well soon.

For one thing, 2025 could mark the fifth consecutive year in which silver demand outstrips supply. This has been happening because silver is a very tight market: silver supply from mine production and recycling has remained consistent whereas demand has grown considerably.

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In addition, our theoretical framework suggests that silver prices are far below their ‘implied value’, which means they have room to rise.

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Lastly, silver has demonstrated outperformance during past precious metal bull markets.

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Taken together, these data points suggest that silver may have further upside from current levels.

To learn more about the current potential of silver, you can read our recent blog post ‘Silver: A Shortage Then. A Shot Now?

And for more actionable insights backed by data and analyses, we invite you to read the latest edition of Netra in its entirety.

*Wherever not indicated, the sources for the data are: Silver Institute, Bloomberg, DSP. Data as of April 2025.

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Disclaimer

This blog is for information purposes only. The recipient of this material should consult an investment /tax advisor before making an investment decision. In this material DSP Asset Managers Pvt. Ltd. (the AMC) has used information that is publicly available, including information developed in-house and is believed to be from reliable sources. The AMC nor any person connected does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Data provided is as of July 2024 (unless otherwise specified) and are subject to change without notice. Past performance may or may not be sustained in the future and should not be used as a basis for comparison with other investments. These figures pertain to performance of the index and do not in any manner indicate the returns/performance of this scheme. The statements contained herein may include statements of future expectations and other forward-looking statements that are based on prevailing market conditions / various other factors and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements.

All content on this blog is the intellectual property of DSPAMC. The User of this Site may download materials, data etc. displayed on the Site for non-commercial or personal use only. Usage of or reference to the content of this page requires proper credit and citation, including linking back to the original post. Unauthorized copying or reproducing content without attribution may result in legal action.. The User undertakes to comply and be bound by all applicable laws and statutory requirements in India.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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