Chasing Record Gold Prices? Don’t Forget Silver: Why it’s a Buy

From Nasdaq: 2025-06-05 13:59:00

Silver, with a market cap of ~$1.5 trillion, has been overshadowed by gold’s market cap of over $22 trillion. Despite being more commonly mined, silver lags behind gold in price performance. However, recent developments suggest silver may catch up, with a breakout to 13-year highs and a bullish gold-to-silver ratio signal.

As gold continues to shine, silver finally broke out to 13-year highs, with price targets of $39 and $45 an ounce. The gold-to-silver ratio reached extremes, signaling a bullish change for silver. Volume on the SLV ETF surged, confirming the breakout and potential for silver to catch up to gold’s recent performance.

“The Big Beautiful Bill” backed by President Trump is expected to add trillions in debt, with $2.4 trillion to primary deficits and $3 trillion to overall debt. Silver is used as a hedge against government spending, tariff uncertainty, and inflation. Additionally, silver will play a crucial role in powering the AI boom and renewable energy sources.

Analysts are bullish on silver miners like First Majestic Silver (AG), ranking the silver mining industry in the top 5%. Despite gold’s recent market dominance, silver appears poised for a resurgence, making it an attractive investment opportunity. Wall Street analysts are optimistic about the potential for silver to shine in the near future.



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