In 2024, silver prices climbed from AU$35 per ounce to AU$47, a whopping 34% increase. In 2025, silver is following a similar trajectory, currently sitting at AU$52.50 per ounce, an increase of 12% in less than three months.
Gold has seen similar increases, rising 34% in 2024 and 11% in 2025, leaving the gold-to-silver (XAUXAG) ratio barely budging from 88.
Silver investors know that in a precious metals bull market, this ratio declines, as silver traditionally outperforms gold when more investors enter the market. Historically, this ratio has reached 50–70. The supply and demand fundamentals for silver are looking strong, with 2025 marking the fourth consecutive year of supply deficits. If investor interest picks up, this deficit could widen, pushing prices even higher.
Current forecasts estimate silver will reach US$39 per ounce this year. However, if the gold/silver ratio declines or investor demand accelerates, prices could surpass this level.
So, if we haven’t yet entered a traditional precious metals bull market, what could silver’s potential gains look like? Could 2025 outperform last year?