Unexpectedly, as the price of gold continues to hit historic highs, silver has become the biggest beneficiary of the precious metals rally.
On Friday, after a brief disturbance caused by the US CPI data, both gold and silver prices rebounded strongly, with spot silver rising nearly 2%, hitting a three-year high and approaching the $29 per ounce mark; spot gold rose to a high of $2389.36 per ounce, setting a new all-time high.
What's worth noting is that this year, the price of spot silver has risen by over 20%, significantly outperforming the 15.4% increase in spot gold.
UBS's previous research report pointed out that as many investors were caught off guard by the speed and magnitude of the rise in gold prices, silver now provides an opportunity for investors to catch up. While the supply and demand for silver itself is indeed tight, it is not enough to support a significant increase in the price of silver. However, in the scenario of soaring gold prices, silver, as a cheaper and more volatile alternative to gold, naturally attracts investors.
Peter Spina, founder and president of investor websites GoldSeek.com and SilverSeek.com, recently stated that most precious metals market observers, investors, and traders are watching this &#34;unusual trend in gold and silver prices, and are still applying old market rules.
Spina expects that there will not be a significant pullback in gold and silver prices in the future, adding that those who sold in the past few days may have acted prematurely.
This means that traders or investors who have sold may re-enter the market in the next wave of price increases, which could be their last move before a meaningful consolidation.
Spina believes that if the price of gold surpasses $2500, the market may see the &#34;first significant pullback,&#34; but he also stated that gold prices could exceed expectations and rise by several hundred dollars before investors pull back.
At the same time, Spina mentioned that silver has the &#34;momentum and fundamentals&#34; to push the price above the technical resistance level of $28.50 per ounce, and then to $30 per ounce. He expects silver prices to challenge $30 and only after breaking through this level will there be a significant price pullback.
Spina's forecast for silver prices has been reflected in Friday's trend.
UBS believes that the current gold-silver ratio has been hovering at a relatively high level, indicating that silver is more attractive compared to gold. Although silver's performance so far this year has been relatively mild compared to its historical performance, it is expected that over time, especially as the Fed begins to cut interest rates in the second half of the year, silver's performance will further improve

Silver has outperformed gold this year, hitting a three-year high and is expected to break through $30. As a substitute for gold, silver is favored by investors, and tight supply and demand have also supported the rise in silver prices. Investors are surprised by the trend of gold and silver prices, expecting no significant pullback and a possible continuation of the uptrend

20%! Silver has outperformed gold in terms of price increase this year