The gold-to-silver ratio now stands above 100, signaling silver’s steep discount to gold. According to MarketWatch, analysts note this level has historically coincided with major upside moves in silver.

During the early COVID panic, the ratio hit similar extremes before silver outperformed gold three-to-one in the months that followed. Ratios above 100 are rare—seen only during periods like the Great Depression and briefly in the 1990s—and tend to revert toward the long-term mean near 70.

Tariffs Cloud Industrial Demand, but Opportunity Builds

President Trump’s new tariff policy—including a 10% baseline duty and up to 145% for Chinese imports—has raised concerns about recession risks and a drag on industrial demand.

MarketWatch reports this has hurt silver more than gold, given its dual role as both a monetary and industrial metal. Yet the industrial headwind may already be priced in. Analysts say the spike in store-of-value demand could soon take the lead, especially as geopolitical uncertainty drives broader capital flows into hard assets.

Physical Deficit Tightens the Bullish Setup

Silver supply remains structurally tight. The Silver Institute, cited by MarketWatch, expects global silver supply to reach 1.031 billion ounces in 2025, against projected demand of 1.148 billion ounces.