CAN SILVER RETURN TO ITS HISTORIC HIGH OF $50?In the world of precious metals, gold has already broken its all-time high in recent months, supported by solid fundamentals. Another precious metal is now catching up: silver. Unlike platinum and palladium, silver today combines all the necessary ingredients to revisit its historic peak. Its bullish potential stems from a unique blend of market volume, correlation with gold, supportive fundamentals, and favorable technical conditions. Silver isn’t just "gold’s little brother": it is currently the only precious metal with both the technical and structural setup to aim once again for the mythical $50 mark, last reached in 2011.
1) After GOLD, silver is the most liquid precious metal and has the highest positive correlation
The first key factor is liquidity. On the precious metals market, gold remains the clear leader, with hundreds of billions of dollars traded daily. Silver comes second, far ahead of platinum and palladium, with around $5 billion in daily volume. This level of activity is crucial—adequate liquidity allows speculative and institutional flows to fully express themselves. Conversely, the low volumes of platinum and palladium limit their upside, as their markets are too narrow to support the kind of momentum seen in gold or silver.
The second strength of silver lies in its natural correlation with gold. Historically, the two metals move in sync. This behavioral alignment is reflected in a correlation coefficient close to 1. Platinum and palladium, by contrast, respond to industrial demand, particularly from the auto sector and emissions technology. Silver, however, blends industrial uses (jewelry, electronics, solar panels, etc.) with a monetary and financial role similar to gold. This dual nature makes silver a hybrid asset, with both ETF-driven financial demand and jewelry-like industrial demand.
2) Technically, the SILVER/GOLD ratio remains in a short-term uptrend from a long-term support
Technical analysis reinforces this fundamental outlook. While gold appears to be losing steam after hitting $3,500, silver still shows a medium-term bullish setup—even though short-term corrections are always possible. The gold/silver ratio, historically useful to detect when silver outperforms gold, also suggests that silver is poised for further gains. Silver’s long-term trend remains bullish as long as the $34–$35 support zone holds. The $50 mark is the natural technical target of this trend.
The following chart shows the gold/silver ratio and indicates that silver is likely to outperform gold through year-end:
And here is the monthly candlestick chart of spot silver:
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