The Crypto Beating Bitcoin 10-to-1 This Year!

Brian Hicks

Posted February 26, 2025

There’s a raging bull market underway in precious metals in 2025. But it’s a bull market very few investors know about.

At Wealth Daily, we’ve been making a fortune on precious metals and gold and silver mining stocks.

We have documented how gold is the No. 1 investment in the market today.

But its little sister, silver, is No. 2!

The cryptocurrency Silver Token (XAGX) has been one of the best-performing new-world asset-backed tokens YTD, outperforming Bitcoin by a multiple of 10-to-1 in 2025.

But there’s another way to play the bull market in silver. We call it silver’s "doubling effect." And it’s simple to understand.

The equation is this: Silver mining stocks — using leverage — will outperform the physical metal by 100%. 

Physical silver is up 11% in 2025. But my favorite silver stock, Silvercorp Metals (NYSE: SVM) is up 21% this year alone!!

Silvercorp Metals currently trades for $3.70. But I think the stock will be trading well above $5–$6 by the end of the year for a gain of at least 35% from today’s levels.

If you don’t have exposure to the bull market in silver, Silvercorp Metals is the best way to get it.

And here’s why silver and Silvercorp Metals will continue to rise throughout 2025. It has to do with something called the silver-to-gold ratio.

Let me explain…

The Silver Bull Market

The silver-gold ratio refers to how many ounces of silver are required to purchase 1 ounce of gold. It is a widely watched indicator in the precious metals markets for assessing the relative value of gold and silver. The ratio is calculated by dividing the current price of gold by the current price of silver. Here’s a comprehensive look at its importance, history, and notable times when the ratio was out of equilibrium:

1. Importance in Precious Metals Markets:

  • Relative Value: The gold-silver ratio helps investors understand the relative strength of gold versus silver. When the ratio is high, silver is considered undervalued relative to gold, and when it’s low, silver is seen as overvalued.

  • Market Signals: A rising ratio might indicate weaker demand for silver or stronger demand for gold, and vice versa. Investors use it to make decisions about switching between the metals depending on the economic and market conditions.

  • Inflation Hedge: Both metals are traditionally seen as safe-haven assets. However, gold is typically preferred in times of significant market stress or inflation concerns, while silver often benefits more from industrial demand, so the ratio reflects broader macroeconomic trends.

  • Trading Strategy: Some traders use the ratio as a basis for a long/short strategy — buying silver and selling gold (or vice versa) when the ratio is far from historical averages.

2. Historical Context:

The gold-silver ratio has fluctuated dramatically over centuries, influenced by different monetary systems, industrial uses, and geopolitical conditions.

  • Ancient Times: In the ancient world, particularly in civilizations like Egypt and  Rome, the ratio was often fixed by decree. The Romans, for example, set the gold-silver ratio at 12:1, meaning 12 ounces of silver equaled 1 ounce of gold. In ancient Greece, it varied between 13:1 and 15:1.
  • Middle Ages to 19th Century: During the Middle Ages, silver played a dominant role as money in Europe, with gold being used more for large-scale transactions and reserves. The gold/silver ratio hovered around 15:1 for much of this time. In the U.S. Coinage Act of 1972, the government fixed the ratio at 15:1, reflecting the economic conditions of the time.
  • The 19th Century: The discovery of new silver deposits, particularly in the Americas, led to a sharp increase in silver's supply, and this abundance pushed the ratio higher. In the 19th century, many nations started adopting the gold standard, which weakened silver's role as money, contributing to significant fluctuations.

3. Modern History and Periods of Disequilibrium:

  • 20th Century: After the abandonment of the gold standard in 1971, the ratio became purely market-driven. Throughout the 20th century, the ratio averaged around 47:1, but it was not uncommon to see it swing considerably during times of economic stress or geopolitical instability.

  • 2008 Financial Crisis: The gold-silver ratio spiked during the 2008 financial crisis, reaching as high as 84:1. This was due to gold's safe-haven demand far outstripping that of silver, which was more industrially tied.

  • 2020 (COVID-19 Pandemic): The ratio hit an all-time high of over 120:1 in March 2020 at the height of the COVID-19 pandemic. This was because silver's industrial demand plummeted due to economic shutdowns, while gold saw a surge in demand as investors sought safety.

  • Historical Norms vs. Extremes: Historically, the ratio has averaged around 15:1–16:1 during periods when both metals were widely used as currency. However, since the move away from bimetallism and toward a fiat money system, the ratio has typically ranged between 50:1 and 70:1. When the ratio is extremely high (e.g., 100:1+), it often indicates a sharp divergence between the two metals' market dynamics — such as when silver's industrial demand collapses or gold demand soars due to crisis.

4. Extremes in the Gold-Silver Ratio:

  • 1600s–1700s: The opening of new silver mines in South America increased the supply of silver dramatically, pushing the ratio up temporarily before it stabilized around 15:1 in Europe.
  • 1930s: During the Great Depression, the ratio surged as economic uncertainty drove gold demand much higher than silver demand.
  • 1980: In January 1980, silver prices skyrocketed due to the Hunt brothers' attempt to corner the silver market. This brought the ratio down to 17:1 before the bubble burst.
  • 2020: As mentioned earlier, the ratio surpassed 120:1, reflecting silver's sharp decline in industrial demand during the pandemic, coupled with gold's safe-haven appeal.

Current Ratio and Its Significance

As of February 22, 2025, the SPDR Gold Shares ETF (NYSE: GLD) is trading at $270.74, while the iShares Silver Trust (NYSE: SLV) is at $29.59. This sets the silver-to-gold ratio at approximately 91.5:1, suggesting that silver is relatively undervalued compared with gold.

Historically, a high silver-gold ratio indicates that investors are gravitating toward gold as a safe haven, often in response to economic uncertainties or geopolitical tensions. This preference drives up gold prices more rapidly than silver, widening the ratio.

Historical Context and Investor Behavior

The gold-silver ratio has experienced significant fluctuations over time, influenced by various economic and geopolitical events. Notably, in April 2020, amid the COVID-19 pandemic, the ratio reached a peak of over 125:1, reflecting a surge in gold prices as investors sought stability.

Historically, after periods of extremely high ratios, silver has often experienced substantial price increases. This pattern suggests that once the gold market stabilizes, investors may turn to silver, recognizing its relative undervaluation and potential for higher returns.

Current Economic and Geopolitical Landscape

In 2024, silver prices rallied significantly, with December silver futures trading at $33.895 an ounce, marking a 41% increase for the year and the highest settlement since 2012. This surge is attributed to increased industrial demand, particularly from the solar energy sector, and supply deficits that have persisted over the past four years.

Analysts predict that silver prices could reach $40 an ounce or more by the end of the year, driven by continued demand and supply shortages. This potential for a "melt-up move" in silver prices suggests that the metal is catching up to gold's record run, offering attractive opportunities for investors.

Wealth Daily’s Conclusion

The current elevated silver-gold ratio indicates a market environment where gold is favored as a safe haven amid economic and geopolitical uncertainties. However, historical trends and current market dynamics suggest that silver may be poised for a significant upward movement, offering potential opportunities for investors looking to diversify their portfolios with precious metals.

The Prophet of Profit,

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Brian Hicks

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Brian is a founding member and President of Angel Publishing. He writes about general investment strategies for Wealth Daily and Energy and Capital. Brian is the managing editor and investment director of R.I.C.H Report (Retired Independent Carefree Healthy) and New World Assets. For more on Brian, take a look at his editor’s page.

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