Silver prices extended their advance on Friday, rising 1.74% to $79.72 per troy ounce from $78.36 the previous session, marking a gain of 12.15% since the start of the year. The metal traded between $78.70 and $79.20 during the day, and is now up nearly 30% from its March 2026 lows, securing a fourth consecutive week of gains.
In smaller units, silver was quoted at $2.56 per gram.
Gold-to-silver ratio signals relative strength
The gold-to-silver ratio slipped to 60.16 from 61.13 a day earlier, indicating that fewer ounces of silver are needed to match the value of one ounce of gold.
The move continues a sharp decline from a peak near 85 in late 2025 to around 60 in the first quarter of 2026, pointing to a clear strengthening of silver relative to gold and a reassessment of the metal’s role beyond a simple store of value.
Traders often use this ratio to gauge whether silver is cheap or expensive relative to gold and to guide allocation between the two metals.
Industrial demand drives structural deficit
Silver’s price profile is increasingly shaped by its industrial use, which now accounts for roughly 60% of global demand and is expected to leave the market in deficit for the sixth straight year.
Expanding green energy and high-tech applications are central to this shift:
- Solar power now represents almost 25% of total industrial silver consumption, reflecting rapid deployment of photovoltaic capacity.
- Electric vehicles are another major pillar of demand. High-end EVs now contain more than 50 grams of silver per vehicle, nearly double the content typically used in conventional internal combustion engine models.
Import data underscore the strength of this demand. China’s silver imports reached 206.76 tonnes in the first two months of 2026, the highest level in eight years, highlighting robust appetite from one of the world’s key manufacturing hubs.
Dollar dynamics and monetary policy backdrop
Because silver is priced in U.S. dollars, currency moves remain an important driver of short-term price action. A weaker dollar generally supports higher metal prices, while a stronger dollar can limit gains.
The Dollar Index (DXY) is currently stabilizing around 98.2 after a period of decline. Recent support has come from the Federal Reserve keeping interest rates on hold in a 3.50%–3.75% range. However, many market forecasts still point to potential dollar softness later in the year if rate cuts begin to materialize.
Shifts in expectations around Federal Reserve policy, including messaging from upcoming meetings and economic data releases, are likely to influence silver’s next moves.
Link to gold and safe-haven role
Silver typically tracks gold’s broader trend, with both metals viewed as alternative stores of value during periods of financial stress or economic uncertainty.
The recent drop in the gold-to-silver ratio suggests silver is playing a dual role: maintaining its function as a hedge asset while gaining prominence as a strategic industrial material.
Key technical levels and near-term outlook
Traders are watching the $80–$81 per troy ounce band as a critical resistance zone. Prices briefly tested this area earlier in the week before pulling back, making it a near-term hurdle for any further upside.
In the coming weeks, price swings are expected to remain elevated, especially around:
- major macroeconomic data releases,
- central bank communications, and
- geopolitical developments that might affect risk sentiment or industrial activity.
Physical market strains and supply signals
Physical market conditions are tightening. Deliverable silver inventories at major exchanges, including COMEX, have fallen to levels often described as stress territory.
Low exchange inventories, when combined with persistent industrial demand and an ongoing structural deficit, increase the sensitivity of prices to any supply disruptions or demand surprises.
Market participants tracking silver are likely to focus on:
- updated industrial demand figures in the solar and EV sectors,
- changes in COMEX and other exchange inventories,
- signs of easing or intensifying deficits in supply-demand balances, and
- further moves in the gold-to-silver ratio as a barometer of relative value.
Curious how macro trends shape metals and crypto? Explore our guide on investing in gold alongside silver’s momentum.
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