Silver’s spectacular rally has intensified, with prices nudging above US$58 an ounce to set a new all-time high and outpace gold’s recent performance. The move has sharpened attention on the gold–silver ratio and revived debate about whether this is simply a cyclical spike — or the continuation of a longer structural shift in the market.
Speaking to Proactive Investors, international financial analyst Tariq Al-Rifai said the rally hasn’t come out of nowhere.
“As a matter of fact, the price of silver has been rising steadily since 2019,” he said. “The current rally that we are witnessing has been going on for several years.”
While safe-haven flows have contributed, Al-Rifai said the most important driver is the rapid expansion of industrial demand, led by solar.
“The number one factor is that silver, of course, is primarily used for industrial uses, technology sector and health care,” he said. “And what we saw over the past couple of years for the first time is that the solar industry has become the number one industry demanding silver.
“So, as we see increased demand for solar, we're seeing increasing demand for silver, and that means less supply of silver for other uses, which is driving up the price and is attracting more and more investors to it.”
ASX-listed exposure to the silver boom
While Al-Rifai noted that Australia has no pure-play silver producer, there are several ASX-listed companies that stand to benefit if the rally continues, including diversified mining company South32, which is Australia’s largest silver producer.
He also pointed to a cluster of developers progressing assets in Australia and overseas.
“Most notable, I would say, is Silver Mines Ltd (ASX:SVL, OTC:SLVMF), which has the rights to develop a field in Australia, which looks very promising,” he said, noting that the company is in the late stage of development.
“There’s also Sun Silver Ltd (ASX:SS1), which, ironically, is looking to mine and develop fields in Nevada, USA. And then there's Unico Silver Ltd (ASX:USL, OTC:USLRF), which is looking to develop fields in Peru.”
Al-Rifai believes buoyant prices could improve financing conditions across the sector. “I think it'll be a good opportunity for these companies that are looking to do mining and exploration,” he said. “They're going to find an easier time financing these operations if silver maintains its high price.”
Gold–silver ratio signals more upside
The sharp drop in the gold–silver ratio — now hovering around 80 — has also caught investor attention. Al-Rifai noted that while the long-term historical average is closer to 50, the ratio had recently stretched to around 100 before easing back. The current level, he said, still sits well above that long-run norm, suggesting silver may yet have further room to outperform.
Al-Rifai sees further gains ahead, predicting prices won’t correct meaningfully before 2027 — “which means, for 2026, I think investors will be very pleased if they are investing in silver.”