Gold’s record-setting rally has made headlines this year, but it’s silver that’s really stealing the show. The less glamorous metal is benefiting from strong financial and industrial demand, surging nearly 25% in 2024 and outpacing gold to become one of the year’s top-performing major commodities.
Despite this impressive performance, silver remains relatively cheap. Currently, it takes about 80 ounces of silver to buy one ounce of gold, compared to the 20-year average of 68. Both metals often move in tandem, offering similar macroeconomic and currency-hedging benefits. With gold hitting record highs due to central-bank purchases, strong retail interest in China, and increased bets on lower US interest rates, silver is also enjoying a boost.
While investor interest in silver-backed exchange-traded funds has been minimal, physical sales are on the rise. Singapore-based dealer Silver Bullion Pte has seen a significant uptick. “Even clients interested in buying gold are starting to say, ‘Maybe I’ll buy silver first and wait for the ratio to rebalance,’” said founder Gregor Gregersen. Between April 1 and 25, Silver Bullion sold 74 ounces of physical silver for every ounce of gold, a sharp increase from the 2023 average of 44.
