THE GIST
NEWS AND FEATURES
Global Philippines Fine Living
INSIGHTS
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
WEBINARS
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
DOWNLOADS
grocery-2-aa
Economic Updates
Inflation Update: Prices rise even slower in May 
DOWNLOAD
Buildings in the Makati Central Business District
Economic Updates
Monthly Recap: BSP to outpace the Fed in rate cuts 
DOWNLOAD
economy-ss-9
Economic Updates
Quarterly Economic Growth Release: 5.4% Q12025
DOWNLOAD
View all Reports
Metrobank.com.ph Contact Us
Follow us on our platforms.

How may we help you?

TOP SEARCHES
  • Where to put my investments
  • Reports about the pandemic and economy
  • Metrobank
  • Webinars
  • Economy
TRENDING ARTICLES
  • Investing for Beginners: Following your PATH
  • On government debt thresholds: How much is too much?
  • Philippines Stock Market Outlook for 2022
  • No Relief from Deficit Spending Yet

Login

Access Exclusive Content
Login to Wealth Manager
Visit us at metrobank.com.ph Contact Us
Access Exclusive Content Login to Wealth Manager
Search
THE GIST
NEWS AND FEATURES
Global Philippines Fine Living
INSIGHTS
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
WEBINARS
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
DOWNLOADS
grocery-2-aa
Economic Updates
Inflation Update: Prices rise even slower in May 
June 5, 2025 DOWNLOAD
Buildings in the Makati Central Business District
Economic Updates
Monthly Recap: BSP to outpace the Fed in rate cuts 
May 29, 2025 DOWNLOAD
economy-ss-9
Economic Updates
Quarterly Economic Growth Release: 5.4% Q12025
May 8, 2025 DOWNLOAD
View all Reports
Economy 3 MIN READ

Technical Analysis: Silver prices vs. gold prices

Is silver a good investment? Silver will have its resurgence in the commodities market. We take a look at how silver prices will perform vs. gold here.

February 28, 2024By Kyle Tan
silver-as

Also referred to as “poor man’s gold,” silver has earned a place just a notch short of the top spot. In sports, gold has long been given to the most successful athletes, while silver went to those with significant achievement just below the pinnacle of triumph.

But does silver really deserve the 2nd place in the podium?

Silver shares the two primary uses of gold, namely, as an inflation hedge and a precious metal (store of value), and as a vital component of things that we use every day. Unlike investing in antique furniture where the value lies in rarity, historical significance, and aesthetic appeal, investing in silver primarily relies on its intrinsic value as a precious metal. Adding to its value is the fact that it is a metal that makes modern electronics, automotive, and medical technologies possible.

So, is silver a good investment?

The industrial uses of silver make it highly sensitive to economic conditions, and therefore more volatile and susceptive to the push-pull factors of supply and demand. Basically, prices of silver are gold prices on steroids.

Performance of silver prices vs gold prices

It can be observed in the past two economic cycles that silver has outperformed gold in an expansionary phase but underperformed towards the end of the cycle. In general, hard commodities linked to industrial production perform well in a growth phase as demand overpowers supply, driving commodity prices higher.

Below are the relative prices of silver to gold in two different periods.

The price ratio of silver to gold after the Global Financial Crisis (GFC) until the onslaught of COVID.  

Silver has outperformed gold in times of expansion.

Since silver’s strong mark-up during the “V-shaped” recovery from the COVID-19 lockdown, silver prices have been stuck in the USD 17 to USD 30 range as growth prospects diminished as the economic cycle progressed. The range-bound price action has formed a “Symmetrical Triangle,” which is neither bullish nor bearish.

Currently, there are polar opposite views in global markets. The “most anticipated US recession in history” did not occur in 2023. To many, it was merely delayed, while the lag effects of the aggressive rate hikes continue to work its way into the economy. However, there has been growing optimism that a soft landing can be achieved by the US Federal Reserve after managing to bring down inflation from a high of 9.1% year-on-year (YoY) in May 2022 to 3.1% YoY, all while avoiding a substantial increase in unemployment.

  1. Soft-landing scenario – A clear break above Line A would be a bullish signal and may be prompted by the US Fed achieving a soft landing and cutting rates to restart the economic cycle.
  2. Hard-landing or recession – A clear break below Line B would be a bearish signal and may be triggered by a recession or slowdown under the pressure of four-decade-high interest rates.

  1. Bullish in the near-term? – The price (USD 22.51) is near the support level C, following a downward channel. A bounce-off at this level would allow the price to break out of the down sloping channel and re-test the USD 25 level.
  2. Momentum can support upward price action.
    A. Momentum point D currently consolidates near support levels, suggesting room for a potential up move.
    B. Momentum point E indicates short-term stability as the price nears the neutral zone 50 in the technical indicator RSI. A potential up move in price would be guided by this indicator as it moves above 50.

Takeaways

The end of the US Fed’s hiking cycle would be positive for silver from its precious metal point-of-view. However, the lag effect of the rate hikes has yet to be fully priced-in by the global economy, and a slowdown in growth in 2024 may pose significant risks to silver.

For now, the risk-reward ratio from the market, geopolitical tensions, and debt concerns point to gold over silver. But silver will have its time. It is, after all, a commodity that dominates when the economy exits a recession or slowdown.

KYLE TAN, MSFE, CSS is a Fund Manager at Metrobank’s Trust Banking Group, managing the bank’s offshore Unit Investment Trust Funds (UITF). He holds a master’s degree in Financial Engineering from the De La Salle University and is a Level 2 passer of the Chartered Market Technician (CMT) certification course and a PSE Certified Securities Specialist (CSS). He spends his free time working out, training at the gun range, or hunting for rare Star Wars collectibles.

Read More Articles About:
Worldwide News Philippine News Rates & Bonds Equities Economy Investment Tips Fine Living

You are leaving Metrobank Wealth Insights

Please be aware that the external site policies may differ from our website Terms And Conditions and Privacy Policy. The next site will be opened in a new browser window or tab.

Cancel Proceed
Get in Touch

For inquiries, please call our Metrobank Contact Center at (02) 88-700-700 (domestic toll-free 1-800-1888-5775) or send an e-mail to customercare@metrobank.com.ph

Metrobank is regulated by the Bangko Sentral ng Pilipinas
Website: https://www.bsp.gov.ph

Quick Links
The Gist Webinars Wealth Manager Explainers
Markets
Currencies Rates & Bonds Equities Economy
Wealth
Investment Tips Fine Living Retirement
Portfolio Picks
Bonds Stocks
Others
Contact Us Privacy Statement Terms of Use
© 2025 Metrobank. All rights reserved.

Read this content. Log in or sign up.

​If you are an investor with us, log in first to your Metrobank Wealth Manager account. ​

If you are not yet a client, we can help you by clicking the SIGN UP button. ​

Login Sign Up