Silver vs Gold: Is Silver Underperforming?
- Silver recently broke above $35, sparking interest among traders.
- For years, silver has struggled to gain consistent momentum, averaging $25.09 in 2021, $21.75 in 2022, and $23.36 in 2023.
- The recent surge began in early June, with silver jumping 5.6% on June 2.
Silver is on the move, surging past $35. But, is this breakout lasting? The white metal has notably underperformed gold, creating a buzz among investors. dive deep into the recent price surge, examining the factors behind silver’s potential. We unpack why silver’s trajectory may hinge on investor positioning and gold’s performance. Discover the impact of industrial versus investment demand and the influence of futures trading on the price of silver and gold. News Directory 3 explores whether the current market dynamics favor further gains or indicate a potential pullback for silver. Discover what’s next for these precious metals.
Silver Price Surges Above $35: Is the Breakout Here to Stay?
Updated June 13, 2025
Silver recently broke above $35, sparking interest among traders. The surge has some wondering if the metal, known for dramatic rallies, is poised for a significant run after lagging behind gold’s performance.
For years, silver has struggled to gain consistent momentum, averaging $25.09 in 2021, $21.75 in 2022, and $23.36 in 2023. While gold experienced an 88.1% increase from early October 2023 to early May 2025, silver only climbed 58.5% during the same period.
The recent surge began in early June, with silver jumping 5.6% on June 2. The rally continued, with silver reaching $35.61 on June 5, a 13.3-year high. By June 9, the price hit $36.66, continuing the breakout.
The World Gold Council provides quarterly reports on gold demand. though, the Silver Institute’s World Silver Survey is released annually, creating a lag in data and making it harder to track capital flows in silver.
Holdings in the dominant SLV silver ETF saw a 3.0% increase month-to-date as of midweek, indicating some renewed interest from American stock investors.However,thes holdings remained slightly below their peak from late October 2024.
An analysis of speculator positioning in silver futures reveals a perhaps bearish setup. The data suggests that buying from speculators may be largely tired,limiting further near-term gains.
Each U.S. silver-futures contract controls 5,000 ounces of silver, valued at $175,000 at $35 per ounce. Speculators are only required to maintain $15,000 in margin per contract, creating leverage of up to 11.7x. This amplifies the impact of futures trading on silver prices.
Silver’s dependence on futures trading makes it vulnerable to shifts in speculator sentiment.Total speculator longs recently reached 112,000 contracts, while shorts fell to 32,800.these levels suggest limited room for further buying and significant potential for selling pressure.
Industrial demand accounted for 58.5% of total silver demand in 2024, according to the World Silver Survey. Investment demand, including physical bars, coins, and ETF inflows, only accounted for 21.7%.
Gold’s recent consolidation could also impact silver. A correction in gold prices would likely lead to a decline in silver, as seen in November 2024 when gold fell 8.0% and silver dropped 10.5%.
What’s next
The near-term outlook for silver hinges on gold’s ability to maintain it’s price levels. If gold remains stable or increases due to foreign buying, silver’s breakout could persist. However, any significant pullback in gold will likely drag silver down with it.