The announcement of new US import tariffs on April 2 not only triggered turmoil in global markets but also cast a shadow over the outlook for the American economy. With these headwinds, silver prices are unlikely to keep up with gold’s rally. Still, the asset could find a path to rebound, MarketWatch reports.
At the end of last month, both precious metals surged by roughly 14% each. But since then, silver has retreated 5.4%, while gold jumped nearly 11% and hit record highs. According to Adrian Ash of BullionVault, such a significant price divergence presents attractive investment opportunities in silver. The current gold-to-silver price ratio hovering near 100:1 is suggesting that the latter is being substantially undervalued, the expert believes.
Moreover, according to the Silver Institute, the market has been in deficit for four consecutive years. Projections for 2025 show supply reaching 1.031 billion ounces against demand of 1.148 billion ounces. Given this imbalance, Stefan Gleason of Money Metals Exchange argues that silver is currently presenting a more attractive medium-term investment opportunity than gold.