Silver prices have risen far more than gold! Analysts: There is still a 22% upside potential in 2025!
Silver prices have risen significantly more than gold, with analysts predicting a 22% increase in silver prices by 2025. With the Federal Reserve cutting interest rates, silver prices have cumulatively risen by 41%, while gold prices have increased by 33%. Saxo Bank and UBS Group AG are optimistic about the prospects for silver, believing that its long-term fundamentals are positive and that the supply-demand gap will attract buyers. The gold-silver ratio is close to the average level of the past 10 years, and if the economy recovers, the gold-silver ratio is expected to converge to 75-80. In the future, silver prices are expected to rise to $42-44, and if gold reaches $3,700, silver could rise to $45-50
Investment Insights - With the Federal Reserve's interest rate cuts in place, the gold-silver ratio is expected to converge, focusing on silver investment opportunities.
On September 3, the gold price rose to $3,546.90 per ounce, setting a new historical high. The silver price climbed to $40.98 per ounce, continuously breaking records since September 2011.
Since the beginning of 2025, the silver price has increased by 41%, while the gold price has risen by 33%. In the past month, the silver price surged by 10%, double the increase of gold.
[Source: TradingView; Silver and Gold Price Trends in 2025]
Analysis indicates that the continuous rise in silver prices is driven by multiple factors, including increasing expectations of U.S. interest rate cuts, growth in industrial demand, and supply shortages.
Saxo Bank is optimistic about the outlook for silver, stating that although silver prices are usually more volatile than gold, its long-term fundamentals are positive. Compared to gold, silver is relatively undervalued, and the ongoing supply-demand gap suggests that price pullbacks often attract buying interest.
Currently, the gold-silver ratio is 86.70, close to the average level of the past 10 years, but still above the average of the past 20 years.
History shows that the convergence of the gold-silver ratio often occurs after a period of monetary easing when the economy begins to recover, triggering the industrial properties of silver. If subsequent interest rate cuts stabilize the economy, the gold-silver ratio is expected to converge. UBS Group points out that if the economy accelerates, this ratio could converge to 75 to 80.
Considering the more coherent and robust upward trend of silver this year, the upward momentum and potential space for silver are even more promising than for gold.
UBS Group indicates that silver prices are expected to rise to $42-44. If gold prices reach $3,700, silver prices could theoretically rise to $45-50, suggesting a potential increase of 10%-22% for silver prices
