The Case For Silver’s 2025 Surge: Why the Undervalued Metal May Be Poised for a Breakout

Silver may be one of the most overlooked assets in today's economic landscape, but that may be about to change. While gold continues to break records, a compelling case is building for silver to stage a breakout of its own.

According to Jordan Roy-Byrne, founder of The Daily Gold and a respected technical analyst, silver tends to shine brightest after gold goes through an initial pullback following a major breakout.

“Peak or no peak, there is great value in silver and silver stocks now,” Roy-Byrne said. “They are poised to strongly outperform in the next leg up.”

The Gold-to-Silver Ratio Has Crossed 100:1-Why That Matters

The gold-to-silver ratio, which measures how many ounces of silver it takes to buy one ounce of gold, has once surged above 100:1, which has only happened a couple of times in history. This level has often preceded a sharp reversal, where silver begins to dramatically outperform gold.

To put this in perspective: Over the past century, the average gold-to-silver ratio has hovered closer to 65:1. When the ratio becomes this distorted, many analysts see it as a signal that silver is undervalued relative to gold.

Industrial Demand Is Booming-And AI Is a Big Part of It

Silver isn’t just a monetary metal-it's a critical industrial asset. Over 50% of silver demand comes from industrial applications, and the biggest growth areas are cutting-edge technologies.

AI infrastructure, electric vehicles (EVs), 5G networks, and renewable energy all rely heavily on silver. From the servers powering machine learning to solar panels, silver is essential-and irreplaceable.

AI's expansion is contributing to a new megatrend for silver demand. Unlike gold, silver has real-world utility in nearly every future-focused industry, creating a double-upside opportunity for investors: monetary value and industrial necessity.

Silver Is in Short Supply-and That Creates Price Pressure

While demand is surging, supply is struggling to keep up. The global silver market is in a multi-year deficit, and investors are pouring into silver ETFs, putting additional pressure on physical supply.

When you combine high demand, tight supply, and undervaluation based on the gold-to-silver ratio, it creates a classic setup for a price breakout. This backdrop creates a compelling setup for investors considering an entry into silver while it's still trading far below its 2011 high of $49/oz.

History Says Silver Is Often the Second Act

Investors who stop at gold may be leaving a powerful opportunity on the table, because silver often follows with even stronger gains.

History offers multiple examples of silver's delayed, but dramatic, outperformance following gold rallies:

• In the 1970s, gold surged as inflation soared, and silver followed suit with an explosive rally of its own.
  
• During the global financial crisis, the gold-to-silver ratio climbed sharply from 53 to 80. Over the next year, silver soared 81%, outpacing gold's 44% gain.
  
• In March 2020, as the COVID-19 panic peaked, the gold-to-silver ratio hit a record 113. In the 12 months that followed, silver skyrocketed 73%-compared to gold's 8%.
  

When gold leads during crises, silver typically lags slightly before staging its own powerful breakout.

If history is any guide, now may be the ideal time to shift attention to silver, just as it prepares to steal the spotlight.

Bottom Line: Silver May Be the Smartest Play Right Now

Keith Neumeyer, the CEO of First Majestic Silver, has often expressed his belief that silver has significant upside potential-and he's gone on record saying he sees it eventually reaching as high as $100 an ounce.

If you’re looking for an asset with upside potential and real-world utility, silver may be one of the most compelling opportunities in today's market. With the gold-to-silver ratio signaling a potential reversion and industrial demand ramping up, now could be the ideal time to take a position.

Don't wait until silver starts to surge. Call Lear Capital today at 855-271-2873 to request your free silver information kit and learn how to add physical silver to your portfolio.