Precious metals have long been a safe haven during uncertain times, but recent market trends have highlighted an intriguing discrepancy: while gold continues to break records, silver has struggled to catch up. So, is now the time for silver to shine? Jeffrey Christian, founder of CPM Group,  says yes!

In a recent discussion hosted by Monex, Christian explained why silver has underperformed compared to gold, despite both metals experiencing demand. He identified two main factors: gold’s broad recognition as a financial asset, and a group of silver investors who had overcommitted based on speculation during past silver booms. Many of these investors bought silver at high prices, hoping for a rapid surge. When those gains didn’t materialize, they began selling, and continue to sell as silver approaches their purchasing level, tempering silver’s price growth. 

Silver is approaching a turning point. “Once those investors stop selling,” he says, “you’ll see silver prices rise.” He points to historical patterns, such as the significant spikes in 1980 and 2011, where silver surged after extended periods of selling.

The potential for silver to rally is particularly appealing in today’s market. While gold may see moderate gains, CPM Group sees a much more dramatic climb for silver.