Silver will soar 110% by 2025, with a growth rate far exceeding gold! Standard Chartered: Beware of short-term corrections

Investment Insights - As the gold-silver ratio falls below 69, the short-term pullback risk for silver is increasing, but institutions remain optimistic about the market in 2026. On December 10, the silver price broke through $61 per ounce, setting a new historical high. Since the beginning of 2025, silver has accumulated a rise of 110%, far exceeding the 60% increase in gold prices. [Source: TradingView; 2025 silver and gold price trends] What are the reasons for this surge in silver? Analysis indicates that supply shortages and the imminent interest rate cuts by the Federal Reserve are the main drivers pushing silver prices higher. Since the U.S. listed silver as a critical mineral in November, market concerns about Trump's tariffs on silver have been rising. Global silver inventories are being shipped to the U.S., and currently, China's silver stocks are at a ten-year low. The inflow of funds into exchange-traded funds (ETFs) has also supported the rise in silver prices, with last week's inflow into silver ETFs reaching a weekly high not seen since July. Pepperstone research strategist Dilin Wu stated that these fund flows can quickly amplify price volatility and trigger short-term short squeezes. Will silver continue to rise in the future? Citigroup pointed out that with the Federal Reserve's interest rate cuts, strong investment demand, and physical shortages, silver prices are expected to surge to $62 per ounce in the next three months. Bank of America stated that under structural market gaps and strong industrial demand, silver prices will reach $65 per ounce by 2026. UBS has raised its 2026 silver target price to $58-60 per ounce, indicating that reaching $65 per ounce is not ruled out. Some analysts predict even more aggressively. RJO Futures strategist Bob Haberkorn expects silver to break through $70 per ounce in the first half of 2026. Philippe Gijsels, an analyst at BNP Paribas, stated that silver could reach $100 per ounce by the end of 2026. However, he warned that silver prices may experience pullbacks in the short term. Is the risk of a pullback in silver prices increasing? Suki Cooper, global head of commodity research at Standard Chartered Bank, pointed out that although the price momentum of silver is supported by strong fundamentals, a normalization of certain traditional market dynamics could trigger short-term volatility "Despite the continuous growth in demand for ETPs (Exchange-Traded Products), the available inventory in London is rising at a faster pace, indicating that market conditions are easing." Cooper stated that while silver still has room to rise relative to gold, the gold-silver ratio has fallen to a certain level, suggesting that silver may face a short-term pullback. The latest data shows that the gold-silver ratio has dropped below 69, reaching a new low since July 2021. From a technical perspective, this indicator shows oversold conditions. 【Source: TradingView; Gold-silver ratio trend over the past 5 years】