Silver fell on Thursday, with XAG/USD at $87.50 per troy ounce. This was down 1.00% from $88.38 on Wednesday.
Since the start of the year, silver has risen by 23.09%. In other units, it was priced at $2.81 per gram.
Gold Silver Ratio Update
The Gold/Silver ratio was 59.20 on Thursday, up from 58.29 on Wednesday. The ratio measures how many ounces of silver equal the value of one ounce of gold.
Silver is traded as a precious metal and is also used in industry. It can be bought physically or traded through products such as exchange-traded funds that track its price.
Prices can be affected by interest rates, the US dollar, and market demand, as silver is priced in dollars. Supply factors such as mining output and recycling can also influence pricing.
Industrial demand, including use in electronics and solar energy, can move prices up or down. Economic conditions in the US, China, and India can affect demand, including jewellery buying in India.
Market Drivers And Outlook
Silver often moves in the same direction as gold. The Gold/Silver ratio is used to compare relative pricing between the two metals.
We remember seeing silver pull back from the $88 level in late 2025 after a very strong 23% run-up for the year. That consolidation period appears to be setting the stage for the market’s next move. As of today, February 26, 2026, we are watching key economic indicators for direction.
The Federal Reserve’s recent commentary suggests a pivot from the rate hikes of 2025, with markets now pricing in a greater than 60% chance of a rate cut by the third quarter of 2026. As a non-yielding asset, a lower interest rate environment reduces the opportunity cost of holding silver. This shift could bring significant investment capital back into precious metals.
Industrial demand remains a powerful undercurrent for us, especially with the recent passage of new green energy initiatives in the United States. Reports from late 2025 already showed global photovoltaic demand for silver consumed a record 235 million ounces, a figure expected to grow by another 15% this year. A pickup in manufacturing, particularly in China where the latest PMI figures showed a slight expansion, supports a bullish outlook.
Looking back, the Gold/Silver ratio was around 59 in late 2025, but it has since widened to nearly 66. This indicates that silver has become cheaper relative to gold, moving further away from the 20th-century historical average of about 50. For us, this suggests silver may be undervalued and could outperform gold if precious metals begin to rally.
Given these factors, we are seeing traders position for upside potential through derivatives. Buying long-dated call options allows for exposure to a potential price increase while defining maximum risk. With implied volatility still below its 2025 peaks, strategies like bull call spreads offer a cost-effective way to express a moderately bullish view over the next few months.
