2025-12-27 12:25:51

Recently, many people have been asking: Is it still a good time to buy silver? How should I choose between gold and silver allocations? Instead of overthinking, it's better to first understand the situation clearly.

From a commercial application perspective, the demand for silver continues to grow. AI chips, space equipment, and photovoltaic industries are all increasing their demand for silver. According to data released by the Silver Industry Association in November 2025, this market has experienced a physical supply-demand gap for five consecutive years. Excluding silver ETFs used for investment, the gap has even persisted for seven years. More importantly, this gap is widening from 2024 to 2025. In contrast, the gold market does not face such supply pressures.

From a risk-hedging perspective, both silver and gold are favored by institutions. Central banks worldwide are increasing their holdings of physical precious metals, especially China and India. Observing the trend of the US Treasury yield curve can reflect the overall market sentiment—yields generally decline in the second half of the year, with short-term yields even inverting, and the lows shifting from the 3-year to the 2-year. This reflects two overlapping expectations: first, the demand for hedging under the Federal Reserve's easing policies; second, the safe-haven demand amid signals of economic recession. The loose dollar policy combined with recession expectations has led to heavy buying of risk-free assets like US Treasuries, pushing up prices and lowering yields. In this environment, both gold and silver's roles as stores of value and safe havens are strengthened.

Looking at the gold-silver ratio data, historical data on Tradingview shows the current gold-silver ratio at 57.26. This is a relatively low level since 2013, and over the long cycle of 1970 years, it is only moderately low. From this perspective, silver still has a relative advantage.

However, it is important to note that the short-term technical outlook shows some pressure. The current market price of silver is already higher than some RWA platform quotes. The 14-day RSI indicator shows an overbought condition, so caution is advised when chasing higher prices in the short term.

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Blockwatcher9000

· 12-27 12:56

Silver indeed has some substance this time; the supply and demand gap has been widening for 7 years, this is no small matter. RSI is overbought, and you're still daring to chase? Not me, I haven't, don't deceive me. The gold-silver ratio at 57 is indeed playable, but I'm worried about a short-term pullback biting back. The central bank is stockpiling; should retail investors follow or not... that's the question. It sounds like the fundamentals of silver are good, but let's wait until the technicals are filled in before making a move. The supply and demand gap aligns with AI chip demand; this logic is indeed solid. There are still people daring to buy in during the short-term overbought state? Brave warriors. Long-term bullish on silver, but in the short term, it's better to wait and see; there's no need to follow the trend and take on positions.

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MEVictim

· 12-27 12:43

The silver gap has been widening for 7 years, but now chasing the high really depends on the RSI… To put it simply, it's good fundamentals but poor technicals. This wave should wait for a pullback before jumping in.

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HackerWhoCares

· 12-27 12:32

The silver supply and demand gap has not been alleviated for 7 years, and this logic is really hard to hold up. Could it be that the demand is not that high? The gold-silver ratio of 57 looks good at first glance, but with RSI overbought and still praising silver's advantages? Short-term chasing highs really has a bit of a gambling feel. Central banks are stockpiling precious metals, and retail investors entering now have a high probability of being the bagholders. It seems that the fundamentals of silver are indeed good, but the technical resistance needs to be cleared first. US debt inversion and recession expectations make precious metals popular, I agree with this logic, just not sure when the peak will be. The issue of gold-silver allocation actually can't be answered; it still depends on how long you can withstand the decline.

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