Since early June, silver has been closing the gap with gold, with prices holding steady around $36.40 per ounce on Monday—near the highest levels seen since 2012. After surpassing $35 per ounce, silver reached its highest price in 13 years.
Industry experts point to the gold-silver ratio dropping below 100 as a key trigger for the recent surge. Over the past year, silver has gained nearly 23%, driven by strong industrial demand, ongoing supply shortages, and growing appeal as a safe haven amid geopolitical tensions.
More than half of global silver demand stems from its expanding use in electronics, solar energy, and broader electrification trends, underscoring its long-term structural importance. The market continues to face its fifth consecutive year of supply deficits, with price gains largely fueled by these constraints, despite forecasts from the Silver Institute suggesting a 21% reduction in the gap by 2025.
Recent geopolitical tensions, including the ongoing Israel-Iran crisis targeting critical energy infrastructure, have added to market volatility. Meanwhile, investors await the US Federal Reserve’s upcoming policy decision, widely expected to keep interest rates unchanged.
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