Silver Takes Lead as Precious Metals Rally Again

Despite a pullback in overnight trade, precious metal markets have rallied strongly this week, with gold climbing by almost 5% to USD $4,165oz.

Silver has put in an even stronger performance, last trading near USD $52.50oz, having rallied by 8% in the past seven trading days, with the gold to silver ratio currently sitting at 79.

At current price levels, gold in USD terms is now trading 6% above its 50-day moving average, which is at USD $3,936oz, while silver in USD terms is 11% above its 50-day moving average, which currently sits at USD $47.39oz.

The surge in both metals over the past week has pushed them back above the key psychological price levels of USD $4,000oz for gold and USD $50oz for silver. Some forecasters are now willing to suggest that the corrective washout we saw in the market in late October has run its course, with new all-time highs likely in the lead up to Christmas.

That is indeed possible, with gold for example falling from USD $4,376oz on October 17^th to $3,948oz by October 28^th, a fall of almost exactly 10%, while silver at one point during that corrective period fell by approximately 15%.

The swiftness of that corrective period for gold and silver was enough to flush out much of the froth that had been building in the precious metal sector in recent months, with some huge outflows seen in the gold ETF space.

We also saw some selling by retail investors, including clients at ABC Bullion, who still locked in huge gains on their precious metal investments given the strength surge in prices over the past two years.

The recalibration of investor sentiment in recent weeks does bode well in terms of the outlook for the metals leading into the Christmas period, especially with the US government shutdown ending, and the Trump White House suggesting more stimulus is on the way for American households, this time in the form of a $2,000 tariff dividend per US citizen.

Comments and plans like this only reinforce the idea that deficits at the Federal level will not only be curtailed, but instead be expanded, especially with a number of signs pointing to a continued slowdown in the US economy, with monetary stimulus also set to flow.

Further encouragement for precious metal bulls will come from a cursory glance at the gold to silver ratio, illustrated below in chart form from 1970 through to the present day.

Gold to Silver Ratio – 1970 to 2025

Source: ABC Bullion, LBMA.

At a current reading of almost 80, it remains incredibly high by historical standards, indicating that gold remains expensive relative to silver.

This essentially never happens at the real top of a precious metal bull market, with silver almost always outperforming during these cycles.

This is something that ABC Bullion clients are highly attuned too, with silver making up an ever-larger share of overall precious metal demand for most of 2025.

We expect this to continue for the foreseeable future, with precious metal demand likely to be well supported going into next year.

Thank you for choosing ABC Bullion.

Jordan Eliseo
General Manager, ABC Bullion

Luke Tyler
Market and Business Analyst, ABC Bullion

^{Disclaimer: This document has been prepared by Australian Bullion Company (NSW) Pty Limited (ABN 82 002 858 602) (ABC). The information contained in this document or internet related link (collectively, Document) is of a general nature and is provided for information purposes only. It is not intended to constitute advice, nor to influence any person in making a decision in relation to any precious metal or related product. To the extent that any advice is provided in this Document, it is general advice only and has been prepared without taking into account your objectives, financial situation or needs (your Personal Circumstances). Before acting on any such general advice, we recommend that you obtain professional advice and consider the appropriateness of the advice having regard to your Personal Circumstances. If the advice relates to the acquisition, or possible acquisition of any precious metal or related product, you should obtain independent professional advice before making any decision about whether to acquire it. Although the information and opinions contained in this document are based on sources, we believe to be reliable, to the extent permitted by law, ABC and its associated entities do not warrant, represent or guarantee, expressly or impliedly, that the information contained in this document is accurate, complete, reliable or current. The information is subject to change without notice, and we are under no obligation to update it. Past performance is not a reliable indicator of future performance. If you intend to rely on the information, you should independently verify and assess the accuracy and completeness and obtain professional advice regarding its suitability for your Personal Circumstances. To the extent possible, ABC, its associated entities, and any of its or their officers, employees and agents accepts no liability for any loss or damage relating to any use or reliance on the information in this document. It is intended for the use of ABC clients and may not be distributed or reproduced without consent. © Australian Bullion Company (NSW) Pty Limited 2020.}