Silver: Price decline seen as excessive - Commerzbank

Source Fxstreet

Commerzbank’s Carsten Fritsch notes Silver has dropped to USD 48.6 per troy ounce, a 12‑month low, and is underperforming Gold as the gold/silver ratio reaches 80. He sees no Silver-specific trigger, citing tech-stock and base-metal weakness, but argues the decline is exaggerated given strong import demand from India and China pointing to robust industrial and investment usage.

Strong demand contrasts with Silver's price slump

"The silver price has dropped to USD 48.6 per troy ounce today, its lowest level in almost a year. Silver is also significantly underperforming gold, as reflected in the rise in the gold/silver ratio to 80."

"The last time silver was this cheap relative to gold was at the end of November 2025. There is no silver-specific trigger for the price weakness. "

"The ongoing correction in technology stocks is apparently fueling concerns about silver demand from this sector. In addition, base metal prices are also under pressure, which is weighing on silver as around half of silver demand comes from industrial applications."

"We consider the current weakness in silver prices to be exaggerated. India has approved the import of large quantities of silver in the coming months. "

"According to customs data, China imported almost 50% more silver in the first nine months of the year than in the same period last year, the highest volume for this time of the year in eight years and already more than in the whole of last year."

"This points to stronger silver demand in China, be it for photovoltaics, other industrial applications or investment purposes."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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