Gold-to-silver ratio hits 12-year low, precious metals bubble risk warning: asset rotation critical point has arrived

SerumDegen · 2026-01-18T04:02:12+00:00

Silver has risen over 27% this year, and the gold-silver ratio has fallen to its lowest level since 2012. Although geopolitical tensions may continue to boost silver in the short term, the risk of excess physical inventory in the medium to long term has increased. Investors are advised to be cautious about chasing gains and to flexibly allocate assets to capture market reversal opportunities.

SerumDegen

2026-01-18 04:02:12

Abstract generation in progress

【Blockchain Rhythm】Silver has already risen over 27% this year, just breaking through the $91 per ounce level. The gold-silver ratio has been pushed down to around 50, the lowest since 2012.

Listen to what institutions say—Bank of Montreal straightforwardly states that this ratio is approaching historical lows. What’s the problem? Currently, the rise in silver is more driven by speculative sentiment and short covering, and the risk of a reversal is gradually building up.

In the short term, geopolitical tensions and some “meme” trades may indeed continue to push silver higher. But in the medium to long term, an oversupply of physical silver is forming, especially as demand in the solar energy sector may have peaked. This means silver’s future performance is likely to be overshadowed again by gold.

What does it usually signal when the gold-silver ratio falls into an extreme range? Asset rotation is coming. That’s why short-term chasing of gains requires extra caution to prevent increased volatility. Capital flows between precious metals, stocks, options, and digital currencies will accelerate, creating opportunities for bottom-fishing or top-selling. Those who understand how to flexibly allocate across different assets are often better positioned to seize market reversal points.

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NftMetaversePainter

· 01-18 04:24

actually, the algorithmic beauty of this silver pump lies in its divergence from fundamentals—pure speculative hash collision, tbh. gold's gonna reassert dominance once the meme narrative collapses into its immutable equilibrium state

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MechanicalMartel

· 01-18 04:22

Silver's recent surge is a bit outrageous, feeling like it's driven by short covering sentiment. But what about the real demand? Excess inventory is definitely worth caution. I learned my lesson from the Bitcoin flash crash. Now that gold and silver are in extreme ranges, asset rotation is definitely brewing. No rush to enter the market. A 27% increase... too fast. Listening to talk about hitting a historical bottom is just that—talk. Reversals often come more violently than expected. The gold-silver ratio at 50, the lowest since 2012? Isn't that a signal to run? Those chasing the rally should be careful. The logic that silver demand has peaked is solid; the growth rate of solar energy installations is indeed slowing down, and inventory buildup will eventually lead to a sell-off. It's also driven by "meme trading," which is just as虚 (虚 means "虚" in Chinese, but in this context, it implies "fictitious" or "hollow"), similar to meme coins. Any slight wind can cause a rush to exit. Gold outperforming silver is indeed a historical pattern. This time won't be an exception—it's just a matter of time.

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MEVHunter

· 01-18 04:19

The gold-silver ratio at 50... to be honest, it's a bit crazy. The short squeeze behavior has accumulated to this extent, and when it reverses, the gas war won't be enough to watch. This is a true lightning loan level arbitrage opportunity. Short-term chasing silver? No, I'm waiting for the moment of asset rotation, because the arbitrage space is the real key.

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