**Silver Price Reacts to Global Factors** Silver prices closely follow gold because both are seen as safe investments. The Gold/Silver ratio helps us understand how their values compare. A high ratio might indicate that silver is undervalued in comparison to gold. Given the strong 70% rise in silver this year, we think the trend will continue upward. Derivative traders should see any small dips as chances to buy call options or long futures contracts. With the price hitting $49.15 today, the bullish trend appears strong. This upward movement is supported by positive conditions for precious metals. The US Dollar Index (DXY) has been falling throughout 2025, recently dipping below the key 100 level, which usually helps dollar-priced assets like silver. Ongoing high inflation rates from the third quarter also boost the demand for safe investments in hard assets. **Industrial Demand and Support** The industrial sector also provides solid support, helping to keep prices stable. Global demand for solar panels and electric vehicles has surpassed expectations this year, as seen in Q3 manufacturing reports from the US and China. This consistent demand in industry creates a strong price floor that wasn’t as prominent in earlier silver bull markets. The Gold/Silver ratio, currently at 83.74, is decreasing, indicating that silver is outperforming gold right now. Historically, we’ve seen that during times when precious metal prices rise, a falling ratio often means that more speculative money is moving into silver, driving its prices up compared to gold. This may make silver a better option for traders seeking higher volatility in the near future. However, we need to be careful as silver approaches the $50 per ounce mark. This level is a significant historical point of resistance, and silver hasn’t managed to stay above it since its peak in 2011. Traders should think about securing their profits with trailing stops on futures positions or buying protective put options in case the price hits this psychological barrier and falls back. The recent price increase has likely raised implied volatility, making standard call options more expensive. More experienced traders might consider using bull put spreads to earn premiums while still holding a positive outlook. This strategy allows profit even if prices stay flat or rise slightly, while also managing risk. **Create your live VT Markets account and start trading now.**

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