Insights 
VT 
Silver Price Influences
Silver’s industrial use in electronics and solar energy sectors impacts its pricing, with increased demand usually raising prices; conversely, a decline lowers them. Economic activities in the US, China, and India add to these dynamics, as each country has substantial industrial sectors utilizing silver.
Silver often mirrors gold’s price movements due to their similar safe-haven status, with changes in the Gold/Silver ratio providing a relative valuation measure. A high ratio might suggest silver is undervalued compared to gold.
Rally and Investment Strategies
With silver hitting $48.71 an ounce, we have seen a remarkable 68.58% run-up since the start of the year. This momentum is strong, and we should be looking at strategies that can capitalize on this trend continuing. The key is to determine if the fundamental drivers supporting this rally are still in place for the coming weeks.
The macroeconomic picture remains very supportive for precious metals. The Federal Reserve’s interest rate cuts throughout 2025 have weakened the US Dollar, while inflation has remained persistent, with the latest CPI data from the Bureau of Labor Statistics for August 2025 showing a 3.4% annual rate. This environment of low real yields makes holding a non-yielding asset like silver very attractive as a store of value.
We must not forget the powerful industrial demand story that has unfolded this year. Citing recent reports from the International Energy Agency, global solar panel production is on track to set another record in 2025, directly increasing the consumption of silver as a critical conductive material. This industrial pull is a structural tailwind that differentiates silver from being purely a monetary asset.
Even after this massive rally, the Gold/Silver ratio is still standing at 81, which is high from a historical perspective. Looking back at data from 2023 and 2024, the ratio has remained elevated, suggesting silver may still be undervalued relative to gold. This points to the possibility that silver has more room to run just to catch up.
Given this bullish backdrop of monetary policy, inflation, and industrial demand, we should consider positioning for further upside using derivatives. Buying call options could be a way to participate in continued price gains with a defined risk. Alternatively, selling cash-secured puts at lower strike prices could allow us to either collect premium or acquire a position on any potential price dips.
