Summa Silver Corp. (TSXV: SSVR, OTC: SSVRF, FRA: 48X)
Silver Lives Here
Silver prices soared to their highest level in over 13 years on Thursday, igniting attention from investors looking beyond gold for safe-haven assets. Spot silver hit $36.07 per ounce during early trading, marking its highest level since February 2012, before settling near $35.90, up 2.6% on the day. Front-month silver futures showed an even stronger performance, surging 4% to remain above the $36-per-ounce mark.
In contrast, gold prices remained relatively steady, inching up by 0.1% to $3,381.25 per ounce the same day.
The recent surge in silver appears to be fueled by a combination of technical momentum, improving fundamentals, and an uptick in investor interest. According to Alexander Zumpfe, a senior trader at German gold refiner Heraeus Group, silver is now “catching up” after weeks of underperformance relative to gold. This shift reflects renewed interest from momentum-driven investors who are rotating into silver.
Investor confidence is further underlined by significant inflows into silver-backed exchange-traded funds (ETFs). On Wednesday alone, silver ETF holdings increased by a substantial 2.2 million ounces, signaling growing interest in the metal.
Although silver is one of 2025’s top-performing assets, its 25% year-to-date gain still lags behind gold’s 30% increase. Over the past 12 months, gold has risen by 44%, driven by escalating geopolitical tensions, heightened appeal as a safe haven, and steady purchases by central banks. During the same period, silver’s gains amounted to only half of gold’s performance.
Traditionally, gold and silver tend to move in tandem during periods of geopolitical uncertainty. However, silver also benefits from robust industrial demand, particularly in sectors like solar panel manufacturing. According to a recent survey by the Silver Institute, the silver market experienced a 15% supply deficit in 2024, a trend expected to persist into 2025.
Silver’s recent rally has narrowed the gold/silver price ratio to approximately 94, its lowest level since April 2, when U.S. President Donald Trump introduced “Liberation Day” tariffs.
Rhona O’Connell, a precious metals expert at brokerage StoneX, noted that there is “no specific reason” for silver’s relative surge against gold. However, given silver’s previously subdued performance, the recent dip in the gold-to-silver ratio below 100 may have prompted ratio-based trading strategies, which further supported silver’s dramatic rise.
While silver’s resurgence highlights its potential as both a safe-haven and industrial asset, its strength relative to gold will remain a closely watched factor among traders and analysts. As silver takes strides to close the gap with gold in 2025, its performance will likely continue to hinge on the delicate balance of investor demand, industrial use, and macroeconomic conditions.
