Silver’s Turn in the Spotlight: Why the Underdog Metal May Be the Next Big Play

After years of playing second fiddle to gold, silver is making a powerful move into the spotlight. As highlighted in the latest Money Metals Midweek Memo by Mike Maharrey, the ongoing bull run in gold is now being matched—and possibly outpaced—by silver. Backed by strong fundamentals, historical patterns, and tightening supply, silver might just be the market’s next big mover. 

Gold’s Relentless Climb 

Gold prices continue to break records. Just last week, gold surged from $3,562 to $3,639 an ounce, peaking at $3,680. While some suggest the metal is overbought, analysts like Jesse Columbo argue it’s a textbook example of a strong bull market—not a bubble. Mike Maharrey reinforced that although corrections are normal, the fundamental drivers of this rally remain intact. 

Silver’s Quiet Momentum Speaks Volume 

Meanwhile, silver is staging an impressive comeback. Up nearly 40% this year, silver has broken key resistance at $40 and is now trading around $41—its highest level since 2011. Analysts see this as a setup for a possible push toward $50, a level last seen in the 1980s and again in 2011. 

 

The Gold-Silver Ratio Signals Opportunity 

A critical factor in silver’s favor is the gold-silver ratio, which currently stands at over 88-to-1. Historically, when this ratio stretches far beyond its average of 60-to-1, silver stages sharp rallies. In 2020, a similar gap triggered an 80% surge in under 20 weeks. The current spread suggests silver remains undervalued—and primed for another breakout. 

 

Structural Deficits Tighten Supply 

Silver’s rising demand is also colliding with significant supply shortages. In 2024 alone, demand exceeded supply by nearly 149 million ounces. Over the last four years, the total deficit has reached 678 million ounces. Because mining operations can’t scale up quickly, this imbalance is likely to drive prices even higher. 

 

Silver Powers the Green Economy 

Beyond investment appeal, silver plays a critical role in technology and green energy. It’s essential for electronics, solar panels, and AI infrastructure. Solar demand continues to set new records, and this industrial appetite has broken records for four straight years. With more growth projected, silver’s industrial use case is only strengthening. 

 

American Investors Are Missing Out 

Interestingly, U.S. investors have been slow to jump on the silver rally. Retail demand for bars and coins has dropped 30% this year, even as global investors remain bullish. Maharrey criticized this trend, noting that many are selling silver for weakening dollars—a move he considers short-sighted in an inflationary environment. 

 

Expert Outlook: Silver Could Break $50 

Money Metals CEO Stefan Gleason recently marked $40 as a crucial milestone. With that barrier broken, many analysts believe $50 is next—and once surpassed, a much bigger rally could unfold. Technical patterns like the long-term cup-and-handle support this outlook. Metals Focus adds that tightening liquidity and strong investment demand should keep silver climbing into 2026. 

 

Junk Silver: A Smart Entry Point 

For newcomers, Maharrey recommends starting with junk silver—pre-1965 U.S. coins made with 90% silver. With premiums now below $1 over spot, these coins offer a cost-effective hedge. Historically, such assets have offered protection against inflation and currency debasement. 

With gold soaring and silver catching up fast, the setup for a major silver rally looks increasingly solid. Backed by supply deficits, industrial demand, and favorable technicals, silver could be entering one of its most explosive phases yet. As Maharrey concludes, those looking to preserve wealth in an era of declining currency value would be wise to keep silver on their radar.