As much as the price of gold has attracted the most global attention (and front-page headlines), silver’s surge could continue its ascent thanks to a major decision by the U.S. government.
The precious metal space is buzzing with bullish expectations as silver has been officially added to the U.S. Geological Survey (USGS) 2025 List of Critical Minerals. The designation, to be confirmed later this year, could boost the price of silver because this listing would shift long-term supply-demand dynamics. But, of course, context is required here.
This news comes as silver has enjoyed its own impressive feat: recently, it has outperformed gold in terms of percentage gains. In year-to-date ranges, silver’s price has surged by 22 percentage points while gold’s price rose by 16 percentage points. As of November 13, the price of silver, according to Kitco, stood at $52.21 USD, an encouraging increase from its January 2025 price of $33 USD.
The silver-gold ratio has a role in where silver is headed. As you know, this is the number that relates to the ounces of silver it takes to buy one ounce of gold. Today’s ratio of approximately 79:1 to 83:1 is important for the market because it is still above the modern historical average. Thanks to the current ratio being higher than the long-term average, most investors consider silver to be too cheap compared to gold.
They expect the “score” to return to normal. For the ratio to go from back down to 60:1, silver’s price has to increase much faster than gold’s price, which raises a question: Is silver poised for some high gains?
In fact, silver’s performance this year has gone on a volatile ride.
Due to silver being recognized as a vital monetary asset, more than 60% of its demand stems from industrial uses, and growing demand is the key factor behind silver's ongoing and significant supply deficit. It’s clear silver has been struggling to maintain footing in a fragile global supply chain.
Also, the silver market has been shaky due to President Donald Trump’s global tariffs and trade war. New York vaults were brimming with silver in early 2025 as market participants and bullion banks built up stockpiles in case the metal was tariffed.
Once U.S. stockpiles grew, the available supply of physical metal dwindled, which led to higher silver lease rates. Then the market also saw how spot prices rose faster than futures prices.
The USGS listing will decide which commodities are included in President Trump’s Section 232 investigation into processed critical minerals and derivative products, announced in mid-April. The president has decided to ensure domestic production of these critical metals a national priority, which could also lead to trade restrictions.
Also, as Mining.com notes, the list would also affect areas of investments in mining and resource recovery “from mine waste, stockpiles, tax incentives for US mineral processing, as well as streamlined mine permitting.”
The USGS designation further cements silver’s status as a vital mineral used for technologies such as solar panels, EV parts and semiconductors. The classification could further drive up the price of silver due to how the government’s strategic stockpiling will seek to secure their supply chains.
Thanks to the price boom in silver, selling silver in Toronto has been increasingly become popular, says Max Smirnov, CEO of Muzeum, a precious metals outlet in Toronto which buys gold and silver. “People want to get rid of things lying around like jewelry, and they want to help boost their income during these tough times,” he adds.
Higher silver prices could lead to more thrifting decisions in the solar power sector, as solar panels have been an important price driver recently. Experts estimate silver accounts for 15% of solar panel costs, inspiring manufacturers to find new approaches to reducing that figure.
What’s happening outside North America could also influence the price of silver, beyond the government designation.
The European Union's Critical Raw Materials Act and Japan's mineral security strategies have recommended coordinated efforts to reduce dependency on potentially hostile suppliers. This approach could tighten global silver markets as governments vie for secure supply sources, leading to sustained upward pressure on prices and valuations for producers.
If there’s another sign of the widespread interest in precious metals today, look no further than Costco, the mecca-hub of consumer culture. Costco sells hundreds of millions of dollars' worth of gold and silver each month.
As selling silver in Toronto and other cities continues to draw interest from people looking to cash in on the high price right now, expect more bullish outlooks on where silver is heading. Smirnov says, “If I had to put $10,000 in a precious metal right now and look for the largest return, I believe in silver more than gold because while gold is at an all-time high, silver just became really hot and is still on the upward swing.”