Analysts believe that the appeal of silver lies in its value relative to gold. The ratio of silver to gold prices has corrected from the April high of 104 to around 86 at present, but the historical average is generally between 50 and 60, which also means that silver has a very broad space for accelerated appreciation.
Driven by expectations of interest rate cuts by the US Federal Reserve, the price of silver opened higher this week, and as of the time of writing, the London silver price has broken through the $40 mark per ounce.
Last Friday, the spot price of silver in London closed at $39.679 per ounce, reaching a new high since August 2011. The $40 level is considered a key resistance level, and Citi analysts predict that after the breakthrough, the silver price will rise to $46 per ounce by the end of the third quarter.
BubbleBubble Report founder Jesse Colombo also noted that by the end of this year, the market will see more gold and silver purchases by ETFs, with a significant increase in Western ETF buying.
He said that at the beginning of the rise in gold prices in 2024, it was mainly driven by Asian investors and central banks, while Western investors were lagging behind. But now they are starting to join in, and will be an important driving force for this bull market.
The central bank of Saudi Arabia invests in silver
Analysts believe that the appeal of silver lies in its value relative to gold. The ratio of silver to gold prices has corrected from the April high of 104 to around 86 at present, but the historical average is generally between 50 and 60, which also means that silver has a very broad space for accelerated appreciation.
One reason for the slower pace of silver price gains is the lack of institutional buyers, as opposed to gold, which is sought after by central banks. However, this dynamic is now changing.
According to the 13F filing from Saudi Arabia's central bank, it invested more than $40 million in two silver funds, iShares Silver Trust (over $305 million) and Global X Silver Miners ETF (over $10 million).
But analysts also point out that the central bank's purchases of ETFs are not about monetizing silver. And given that the central bank also manages the country's sovereign wealth fund, some analysts believe the investments are more likely a strategy of the wealth fund.
Apart from this, physical demand for silver has also seen a significant improvement this year. According to the Silver Institute’s report, physical investment in silver has increased by 34% since the beginning of 2025, while physical investment in gold and Bitcoin has increased by 28% and 18%, respectively.
On the other hand, the global transition to green energy is also helping to sustain the industrial demand for silver, with some analysts predicting that global silver demand will exceed 1.2 billion ounces by the end of this year. This also means that silver will have dual roles as both an investment and an industrial metal, positioning it as a significant player in the precious metals sector.
As an integrated internet platform providing benchmark prices; On September 5th, the benchmark price of silver by SunSirs was 9,813.67 RMB per kilogram, an increase of 5.24% compared with the beginning of this month (9,325.00 RMB per kilogram).
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