Gold may be grabbing the headlines, but it’s silver that’s quietly setting up for a potentially explosive move. And history says it might be just around the corner.

Gold’s rally this year has been nothing short of historic. In just two weeks, prices jumped from $2,960 to $3,500 an ounce, a sharp reminder that when global uncertainty strikes, gold remains the ultimate safe haven. Over the past 12 months, gold is up 41% — a clear signal that investors are seeking shelter from inflation, geopolitical volatility, and mounting debt.¹

But here’s what most investors are missing: silver hasn’t kept pace, yet.

Over that same period, silver has gained just 23%. That’s still better than the S&P 500’s modest 6% return, but the gold-to-silver price gap has widened dramatically. And whenever that happens, silver tends to play catch-up, fast.²

The Gold-to-Silver Ratio Signals Opportunity

Right now, the gold-to-silver ratio hovers around 98. That means it takes 98 ounces of silver to buy just one ounce of gold. A stark contrast to the 30-year average of 68 and a sign that silver is greatly undervalued relative to gold.  The last time we saw a ratio this high was during the COVID panic in 2020. What happened next? Silver surged 73% in just a year. Gold? Only 8%.³

Go back even further to the 2008 financial crisis. Same story. As markets bottomed out and the Fed pumped liquidity into the system, silver roared back 200%. Gold was up 37%, impressive, but still second place.

The pattern is clear: when the ratio stretches, silver springs back, hard.

Silver: A Two-Sided Asset

Unlike gold, which is almost entirely a monetary metal, silver wears two hats. It’s a hedge against inflation and economic chaos. And a critical industrial metal used in solar panels, electric vehicles, semiconductors, and more.

That means silver is vulnerable to economic slowdowns, as its price tends to dip during periods of recession. But it is also uniquely positioned to benefit from long-term growth in clean energy and advanced tech. Over 60% of silver’s demand comes from industry. With governments around the world pushing the green revolution, that demand is only going to grow. As with past recessions, such as the 2008 financial crisis, silver has historically rebounded once recovery begins, driven by both monetary stimulus and renewed industrial demand.

Technicals and Sentiment Are Turning

Silver’s recent sideways movement has left many investors impatient. Yet there are signs that silver is gaining momentum. According to analysts, the metal is now completing a rare technical formation — a 14-year “cup and handle” pattern. If silver breaks above $36, it could trigger a sharp move to $45, even $50. And given silver’s volatility, those moves don’t take long once they start.⁴

Sentiment in the silver market is finally starting to turn and that’s a big deal. Sentiment is basically the mood of the market. Are people excited? Scared? Bored? Earlier this year, silver sentiment hit a decade-low. Nobody wanted it. Meanwhile, gold was the market’s darling.

But according to Matt Bauer, a Commodity Strategist at Ned Davis Research, silver is now “deeply oversold” compared to gold.  Indicating that its current price is significantly lower than what fundamentals would justify. Likely due to an exaggerated market reaction. That kind of setup can be a launchpad. If sentiment simply moves from “no interest” to “mild interest,” we could see a serious rally. Why? Because gold’s already crowded. Everyone’s in the trade. Silver, on the other hand, is still hanging out at the kids’ table, waiting for investors to notice it’s been undervalued all along.⁵

History Is on Silver’s Side

This isn’t just speculation. Time and again, silver has lagged gold during periods of fear, only to outperform once confidence returns. In 2016, after the gold-to-silver ratio hit 80, silver rallied 86% in the following 12 months, while gold declined by 21%.⁶

The setup we’re seeing now is strikingly similar.

Why Now

If you’re waiting for the perfect moment to move into silver, history suggests it may be now. Consider the following:

• The gold-to-silver ratio remains historically high.
• Industrial demand is strong and growing.
• Silver is forming a long-term bullish technical pattern.
• Investor sentiment is shifting off a generational low.
• Central bank monetary policy is set to support prices

The real takeaway? Silver is still trading at a price that’s accessible to the everyday investor. That means it offers greater upside potential for those looking to make a move before Wall Street jumps on board.

Conclusion

Right now, gold has the prestige. But silver has the potential.

With the global economy teetering between inflation and instability, silver could be the contrarian play that pays off. If history repeats, and it often does, silver’s breakout may already be in motion. The question is whether you’ll act before the crowd does. To learn more about protecting your retirements funds with silver and other precious metals, call American Hartford Gold at 800-462-0071.

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Max Baecker is the President of American Hartford Gold (AHG), the nation’s largest retailer of precious metals. He leads American Hartford Gold’s mission to help clients achieve long-term financial security with physical gold and silver.

Under his guidance, American Hartford Gold has delivered billions of dollars’ worth of precious metals to thousands of satisfied clients.

Max's dedication to upholding American Hartford Gold's industry-leading standards is reflected in its accolades. American Hartford Gold has made numerous high-ranking appearances on the prestigious Inc. 5000 List of America’s Fastest-Growing Private Companies. AHG holds an A+ Rating from the BBB and a 5-Star Rating on Trustpilot from thousands of American Hartford Gold reviews. American Hartford Gold is the only precious metals company trusted and recommended by Bill O’Reilly.

AHG offers investment-grade gold and silver coins and bars at competitive prices. Clients also benefit from its buy-back commitment with no back-end fees. To learn more, visit American Hartford Gold.

Notes:

1. https://www.wsj.com/finance/commodities-futures/silver-investment-gold-prices-record-high-5fe4a81b

2. https://www.wsj.com/finance/commodities-futures/silver-investment-gold-prices-record-high-5fe4a81b

3. https://www.wsj.com/finance/commodities-futures/silver-investment-gold-prices-record-high-5fe4a81b

4. https://www.msn.com/en-us/money/markets/gold-s-run-up-could-be-over-silver-is-about-to-break-out/ar-AA1DM8Kw

5. https://www.kitco.com/news/article/2025-04-28/gold-sentiment-peaking-it-may-be-silvers-time-shine-ndrs-bauer

6. https://www.americanhartfordgold.com/silver-price-charts/