Silver, which had long failed to rally in the wake of gold, recently entered a bull market, according to economist Peter Schiff. The expert explains that traditionally, as soon as the white metal catches up with the yellow one, it begins to outpace it in terms of growth.
Increased industrial demand for silver, especially in the solar energy sector, along with declining confidence in the dollar as a reserve currency, creates favorable conditions for the growth of the safe-haven metal.
Schiff notes that investors are starting to realize that silver is undervalued compared to gold. Historically, bull markets see an average gold-to-silver ratio of 50 to 1 or lower. Under present conditions, the price of silver could reach $50 per ounce. Currently, prices are holding below $40 per ounce.
Moreover, the shortage in the white metal market is intensifying. Leading global producers, such as Mexico and Peru, are reporting declining ore quality and industry-wide regulatory issues. In 2024, total global silver production barely exceeded 800 million ounces, while demand has already jumped to nearly 1.2 billion ounces.