BlockBeats news: On January 18, silver's price surged over 27% year-to-date, reaching $91 per ounce, pushing the gold-to-silver ratio down to about 50, the lowest level since 2012. Bank of Montreal (BMO) warned that the ratio is approaching a historically low range, and the current rally in silver is largely driven by speculative momentum and short squeezes, with increasing risks of a trend reversal accumulating.
BMO noted that although geopolitical uncertainties and "meme" trading may continue to push up silver prices in the short term, a physical silver surplus is forming in the medium to long term. Particularly, demand from the solar sector may have already peaked, and silver's performance could once again lag behind that of gold in the future.
BiyaPay analysts believe that when the gold-to-silver ratio reaches an extreme range, it often indicates that asset rotation is approaching, and chasing rising prices in the short term requires caution regarding the risk of increased volatility. Through BiyaPay, users can use USDT to participate in US stocks, Hong Kong stocks, options, and cryptocurrency trading, allowing flexible switching between precious metals and other assets to better respond to potential market reversals.