# Gold on crack: why silver is set to soar

> Silver moves 1.4 times faster than gold, making it a volatile bet for investors bullish on precious metals.
- Title: Gold on crack: why silver is set to soar · MoneyWeek
- Summary: Silver moves 1.4 times faster than gold, making it a volatile bet for investors bullish on precious metals. Silver's extreme volatility compared to gold…
- Keywords: silver, gold, precious metals, investment, volatility, gold-to-silver ratio, commodity prices, investor demand, exchange-traded funds, macroeconomic trends, crack, set
- Source: MoneyWeek — https://moneyweek.com/investments/silver-and-other-precious-metals/why-silver-price-is-set-to-soar
- Published: 2026-09-25T09:09:46+00:00
- Read time: 2 min
- Topics: silver, gold, precious metals, investment, volatility, gold-to-silver ratio, commodity prices, investor demand, exchange-traded funds, macroeconomic trends
## Silver moves 1.4 times faster than gold
Silver is 80% correlated with gold but has 1.4 times the volatility. This means silver wins bigger on the way up and falls harder on the way down.

> "gold on crack"
## The gold-to-silver ratio tells the story
An ounce of gold currently buys 66 ounces of silver. The 30-year average is 68, so silver is near fair value and positioned to outperform if gold keeps rising.
## Silver hit record highs in January 2026
Gold reached $5,417 per ounce and silver hit $117 on January 27, 2026, when the gold-to-silver ratio touched 46. An investor who bought at the 2020 lows would have gained 874% in silver.
## Historical ratios show silver's upside
In 2011, the gold-to-silver ratio hit 33 during a solar boom. In 1699, Sir Isaac Newton saw it at 15.2. If those levels returned, silver would double or quadruple versus gold.
## Photography once drove silver demand
Silver halide salts darken when exposed to light, making silver essential for film photography. Demand peaked at 228 million ounces in 1999 but fell as digital cameras took over.
## Solar panels drove a 2011 boom
Photovoltaic silver demand surged as solar installations exploded, but manufacturers cut consumption by using thinner layers and switching to copper. Demand has fallen since 2024 despite record installations.

> the best cure for high prices is high prices
## Silver has unique industrial properties
Silver is the best electrical and thermal conductor among metals and the most reflective in visible light. It kills bacteria and is used in wound dressings, filters, and advanced electronics.
## The silver market remains in deficit
Despite falling demand from photography and solar, the market has a 46 million ounce deficit. Silver is mostly a by-product of mining other metals, so higher prices don't boost supply much.
## Investor demand drives the real story
Central banks buy gold during uncertainty, but the public buys silver because it's more affordable and has more upside. Silver is part precious metal, part industrial metal, combining gold's monetary appeal with copper's demand dynamics.
## Silver lagged miners after January 2026
Gold fell 20% from its January 2026 peak, gold miners fell 13%, and silver fell 43%. But silver has turned the corner and should outperform as the gold bull market resumes.
## Consider bitcoin and gold together
Bitcoin is down 37% from its October 2025 high and responds to similar macroeconomic trends as gold. The BOLD Index combines bitcoin and gold on a risk-weighted basis with less volatility than silver.
## Key takeaway

Silver's extreme volatility compared to gold means it can deliver outsized gains when gold rises, but the gold-to-silver ratio matters more than the absolute price.