Silver prices went up on Tuesday. According to FXStreet data, the price increased to $85.74 per troy ounce from $85.17 on Monday, which is a rise of 0.68%. Since the beginning of the year, the price has grown by 20.62%. The Gold/Silver ratio, which shows how many silver ounces equal one gold ounce, was 53.59 on Tuesday, down from 53.94 on Monday. Silver prices are influenced by geopolitical issues and interest rates. Typically, silver prices rise when interest rates are low.

Impact of Industrial Use

Silver is used in industries like electronics and solar energy because of its excellent electrical conductivity. Economic activity in the US, China, and India drives demand and affects prices. Silver prices often follow gold prices since both are considered safe investments. The Gold/Silver ratio helps us understand their relative values. A high ratio might mean silver is undervalued compared to gold, while a low ratio could suggest that gold is undervalued against silver. With the current silver price at $85.74, a strong upward trend seems likely for the next few weeks. The 20.62% increase since the start of this year indicates strong momentum from late 2025. Traders might find it beneficial to buy during small dips and use call options or long futures contracts to take advantage of this upward trend.

Market Indicators

The Gold/Silver ratio falling below 54 is an important signal. Earlier, this ratio stayed above 85 for most of 2024, and its steady decline during 2025 indicates that silver is performing better than gold. This suggests that spread trades, like going long on silver and short on gold futures, may continue to be profitable. We believe the Federal Reserve’s gentle approach from late 2025 will keep interest rates low, which supports non-yielding assets like silver. The US Dollar Index (DXY) has shown this trend, falling below 98 last month, which benefits silver. A weaker dollar makes silver more affordable for foreign buyers, increasing demand. Industrial demand strongly supports the high silver prices. After significant “Green Infrastructure” agreements between the US and EU in the second half of 2025, the need for solar panels surged. The solar industry used over 240 million ounces of silver last year, as noted in the World Silver Survey, and we expect this demand to rise through 2026. Ongoing global trade tensions are also driving investors toward safe assets. While gold is a traditional choice, we’ve seen substantial investment in silver across ETFs since November 2025. Assets in the iShares Silver Trust (SLV) rose by over 7% during this time, indicating growing interest beyond just industrial needs. Create your live VT Markets account and start trading now.

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