Silver Up 26% YTD. Could Climb More to $43 an Ounce, Citigroup Says

[Ben Graham]

Precious metals have been the top-performing asset class in 2025, handily trouncing the U.S. stock market and bonds. Gold, platinum, and silver are all notching impressive double-digit gains, with platinum leading the way with a 54% gain year-to-date.

Gold soared to a record high above $3,400 an ounce and climbed 26% in the first six months of the year. Now, analysts say, silver could be ready to take the lead after hitting a 13-year high in June, up 25% in the first half.

Tightening physical supplies and increasing investment demand are set to push silver higher over the next several months.

Citigroup targets gains to the $40 an ounce level in silver in the next three months and then to $43 over the next 12 months. Interest rate cuts from the Federal Reserve could also help boost silver in the second half of the year, Citigroup says.

Around the world, retail investors continue to accumulate silver bars and coins. India, in particular, revealed a 7% year-over-year gain in retail silver bar and coin purchases in the first six months of 2025.

Why Buy Silver?

Silver benefits from both investment demand as a precious metal and industrial demand for many different uses in manufacturing. In industry, silver is utilized in manufacturing and technology, which keeps physical demand high. Silver is used to manufacture solar panels, electronics, batteries, nanotechnology applications, water purification systems, and many other products. Demand for solar power has increased significantly in recent years, which has created a new industrial input for the metal.

Timing Can Help

Precious metals investors typically take a long-term view to wealth building and precious metals accumulation. If you are considering if now is the right time to buy, the gold/silver ratio can offer insights as an effective timing mechanism. Here’s how that works:

The gold/silver ratio is a simple calculation – divide the price of an ounce of gold by the cost of an ounce of silver.

Spot gold         $3,348 an ounce

Spot silver       $38 an ounce

Gold/Silver ratio = 88

Gold/Silver Ratio at 88 Signals It Remains Undervalued Compared to Gold

Historically, there have been only a few occasions when the gold-silver ratio traded above 80. Readings above 80 signal that silver is severely undervalued and is a strong buy signal for the metal.

Higher Silver Prices Ahead

The trend for silver points to higher prices ahead. Citigroup is targeting a move to $43 an ounce over the next year. If you buy today with silver at $38 an ounce, you could lock in a 13% gain over the next 12 months. What’s in your portfolio now?  Curious to explore how silver could help you to build wealth? Blanchard portfolio managers are available for a free, personalized portfolio check-up. Give us a call at 1-800-880-4653.

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