Gold Silver Ratio Drops 7%, Forecasts Suggest Renewed Silver Demand

The gold-silver ratio trades near 59.24 as of writing, down sharply from last week’s high of 64.39 and marking a 7% weekly decline. The ratio, which shows how many ounces of silver equal one ounce of gold, recently touched a three-week low near 57.01. Today alone, it fluctuated between 57 and 59.

That drop tells a story. Silver has started to outperform gold. But how sustainable is this shift?

Silver Gains Ground While Gold Cools

Gold trades at $5,182.53, up 3.40% over the past seven days. However, it slipped 0.16% in the last 24 hours after testing the $5,200 level in the previous session.

Silver stands at $87.31. The metal climbed 10.64% over the last 7 days, even though it declined 3.67% in the past day. That stronger weekly performance explains the steady compression in the gold-silver ratio.

When silver rises faster than gold, the ratio falls. That dynamic has played out for six consecutive sessions.

Why The Ratio Matters Now

Investors often use the gold-silver ratio as a valuation tool. A falling ratio signals that silver gains relative strength. Historically, such moves have appeared during periods when industrial demand and safe-haven flows align.

Silver occupies a unique position. It functions as both a defensive asset and a core industrial metal. Supply constraints have tightened availability, while expectations of economic recovery have supported industrial consumption.

At the same time, geopolitical tensions and economic uncertainty have sustained safe-haven interest. Investors now watch developments around the potential US-Iran conflict and President Trump’s 10% global tariffs. These events influence broader market sentiment and risk appetite.

If risk aversion rises, both metals may benefit. Yet silver’s dual role could amplify its response.

A Pattern Similar To 2025

Market observers note similarities to price action seen in 2025. During that period, silver outperformed gold as demand improved and supply pressures intensified. The ratio moved steadily lower before stabilizing.

Source: James Turk via X

Now, with the ratio back near 59, analysts question whether history may repeat. Does this signal the early stages of another silver-led phase? Or does the ratio simply reflect short-term momentum?

The broader macro backdrop adds complexity. Gold still trades near record territory after reaching an all-time high of $5,591 earlier. Silver remains below its historical peaks but continues to close the gap.

Technical Signals Point Lower Too

From a technical perspective, the gold-to-silver ratio has lost prior support and now trends toward the 54 level. Analysts observe that with gold near $5,186 and the ratio at 59, a retest of the broken support may precede another move lower.

Source: TradingView via X

A continued slide would reinforce silver’s relative strength. Conversely, stabilization near current levels could signal consolidation before the next directional shift.

Precious metals markets now face a mix of geopolitical risk, trade policy uncertainty, and shifting industrial demand. The gold-silver ratio reflects these forces in real time.