Insights 
VT 
Silver prices dropped on Wednesday, with silver trading at $48.41 per troy ounce, a 0.65% decline from $48.73 on Tuesday. Since the start of the year, silver prices have increased by 67.55%.
Gold Silver Ratio Overview
The Gold/Silver ratio was at 84.16, slightly reduced from 84.64, indicating the ounces of silver needed to match the value of one gold ounce. Silver is a widely traded precious metal, often used to diversify portfolios or hedge against inflation. It can be bought in physical form or traded via Exchange Traded Funds.
Various factors influence silver prices, including geopolitical instability, interest rates, and the strength of the US Dollar, in which silver is priced. Industrial demand also plays a role, particularly in electronics and solar energy sectors, which highly use silver due to its exceptional electrical conductivity.
Silver prices often follow gold’s movements. When gold prices rise, silver typically follows, reflecting their shared status as safe-haven assets. The Gold/Silver ratio assists in determining the metals’ relative valuation. A high ratio might indicate silver is undervalued compared to gold, while a low ratio could suggest the opposite.
We are looking at a slight pullback in silver today, October 22, 2025, after an incredible 67% rally so far this year. This kind of breather is normal and gives us a moment to decide if this trend has the strength to continue into the final quarter. The key is to determine if this is a temporary pause or the beginning of a more significant correction.
Trading And Investment Strategies
The Gold/Silver ratio, sitting at 84.16, remains a critical piece of the puzzle for us. Looking back, we know that ratios this high have historically suggested that silver is undervalued relative to gold. For instance, we saw the ratio spike well above 100 during the economic uncertainty of 2020 before silver began to strongly outperform.
The fundamental story is driven by robust industrial demand, which shows no signs of slowing. Recent industry reports, like those from the Silver Institute we saw earlier this year, projected that global industrial consumption would surpass 630 million ounces in 2025, a new record. This demand is largely fueled by the unstoppable growth in solar panel manufacturing and the continued expansion of 5G and electric vehicle infrastructure.
Monetary policy is also providing a significant tailwind for precious metals. After the aggressive rate hikes we saw from the Federal Reserve back in 2022 and 2023 to combat inflation, the current environment of stable, lower interest rates makes holding a non-yielding asset like silver much more attractive. This backdrop supports the idea that investment demand will remain strong.
Given the sharp run-up, we should anticipate increased volatility in the coming weeks. For derivative traders, buying call options can offer a way to participate in further upside while clearly defining risk. Alternatively, selling cash-secured puts below the current price of $48.41 could be a strategy to either collect premium or acquire silver at a lower cost basis if a deeper pullback occurs.
