<p>All eyes have been on gold as the yellow metal has hit record high after record high. But there is another bull market that is somewhat in the shadows.</p>
<p>Silver.</p>
<p>In this episode of the Midweek Memo, host Mike Maharrey highlights the silver market, covers the dynamics driving the price up, and explains why there are solid reasons to think silver has plenty of room to run even higher.</p>
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<p>Mike opens the show, noting gold hit several record highs over the past week. </p>
<blockquote>
<p>"When I started recording the show last week, gold was at $3,562. It closed yesterday at $3,639. That’s a 2.2 percent gain in one week. The yellow metal actually traded higher than that yesterday morning, rising as high as $3,680."</p>
</blockquote>
<p>Mike said he wouldn't be surprised if there was some selling and consolidation in the near future, but referenced an article by analyst Jesse Colombo to argue people shouldn't be worried about a precious metals market crash.</p>
<blockquote>
<p>"Healthy bull markets never go straight up. There are always corrections along the way. As the saying goes, bull markets climb a wall of worry. … I do expect to see some selling and some consolidation. That’s normal. But as I explained last week, the fundamentals supporting this bull rally are still in place."</p>
</blockquote>
<p>But today's show isn't about gold. It's about the other bull market — silver.</p>
<blockquote>
<p>"Silver has kind of been in the shadows as gold sets record after record. Silver is still below its twin all-time highs around $50 an ounce set in the 80s and then again in 2011. That said, silver isn’t quite the slacker some people imagine. Silver is up an impressive 39.7 percent so far this year, hitting the highest level since 2011. It has broken through the significant $ 40-per-ounce resistance and appears to be on track for a new record high of over $50. If you’re bullish on the gold rally continuing, you should be even more bullish on silver, because it appears to have plenty of room to run up."</p>
</blockquote>
<p>Mike highlights the gold-silver ratio as one indicator that the silver bull still has plenty of legs. It is currently still over 88-1. </p>
<blockquote>
<p>"The gold-silver ratio represents the amount of silver it takes to buy one ounce of gold. In the modern era, the gold-silver ratio has averaged between 40-1 and 60-1. When it rises far above that level, it tends to snap back quickly to that mean. This typically happens when the price of silver rallies to close the spread."</p>
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<p>Mike notes that some analysts claim the gold-silver ratio has broken down and no longer provides a legitimate market signal. </p>
<blockquote>
<p>"Nobody has really explained why it might have broken down. I think they just say that because it has been historically wide for quite a while now – more than two years."</p>
</blockquote>
<p>Mike provides some historical examples of the gold-silver ratio growing wide, as it is today, and then snapping back to the mean. The most recent was during the pandemic. </p>
<blockquote>
<p>"From a historical perspective, when you see gold-silver ratios well above the historical average, it tells you that silver is underpriced compared to gold, and there is a strong possibility that silver will go on a bull run to close that gap. Historically, this has often happened in the midst of a gold bull rally, with silver outperforming gold. Of course, past performance does not guarantee future results. Maybe the gold-silver ratio has broken down. But until somebody can give me a good explanation as to why this would happen, I’m going to stick with the historical precedent."</p>
</blockquote>
<p>So, what's driving this silver bull market?</p>
<p>Mike says that many of the same macro factors pushing gold higher are also contributing to silver's rise. But there are some specific issues directly impacting the silver market, including supply and demand dynamics. Mike points out that the silver market has charted a structural deficit for four straight years, meaning mine output and recycling have not produced enough silver to meet demand. </p>
<blockquote>
<p>"When demand outstrips mining and recycling output, industrial users of the metal are forced to wade into the market to access existing stocks of silver. This pushes the price higher."</p>
</blockquote>
<p>Demand is hot from the industrial sector. It set a record for the fourth straight year in 2024.</p>
<p>However, investment demand has lagged, especially in the U.S. </p>
<blockquote>
<p>"According to the Silver Institute, retail silver investment is down about 30 percent in the U.S. When U.S. investors finally get into the game, it could drive silver prices even higher."</p>
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<p>So, what is the best way to invest in silver right now?<br /><br />Mike suggests "junk silver," noting that it isn't junk.</p>
<blockquote>
<p>"I’m talking about U.S. dimes, quarters, and half-dollars minted before 1965. These coins are 90 percent silver! Did you know that the melt value of a 1964 or earlier Washington quarter is around $7.39? Like I said…not junk."</p>
</blockquote>
<p>Have you ever wondered why they took the silver out of U.S. coinage? </p>
<p>Mike says you can blame Lyndon B. Johnson and the Coinage Act of 1965, noting that it was a typical act of money devaluation.</p>
<p>Given that monetary debasement is the norm, Mike suggests that listeners need to have real money — gold and silver. He recommends calling 800-800-1865 and talking to a Money Metals precious metals specialist.</p>
<h2>Articles Mentioned in the Show</h2>
<p><a href="https://www.moneymetals.com/news/2025/09/08/90-us-coins-the-best-way-to-buy-silver-right-now-004323" rel="noreferrer">90% U.S. Coins: The Best Way to Buy Silver Right Now</a></p>
<p><a href="https://www.moneymetals.com/news/2024/03/25/what-is-the-gold-silver-ratio-why-should-we-pay-attention-to-it-003075" rel="noreferrer">The Gold-Silver Ratio: What Is It and Why Should We Pay Attention to It?</a></p>
<p><a href="https://www.moneymetals.com/news/2025/09/09/stop-worrying-about-a-correction-in-precious-metals-004324" rel="noreferrer">Stop Worrying About a Correction in Precious Metals</a></p>
