Goldman: How to (Implicitly) Handle Silver Gains
A Record Worth Revisiting
Contents (1800 words)
Relative Value in Precious Metals: Gold Versus Silver
Silver: Geopolitics, Liquidity, and Speculation
Gold: Structural Demand Remains Intact
Emerging Divergence in Forward Outlook
Trade Expression: Relative Value via the Ratio
Final Comment
Final Final Comment
Introduction: A Record Worth Revisiting
In September 2024, Goldman Sachs recommended that clients buy silver modestly. On January 12, 2025, the bank reiterated that recommendation with a more aggressive conviction. Since then, Goldman Sachs has remained largely quiet on silver.1
Now, the firm is effectively reframing the trade. Silver is described as overbought, while gold is presented as undervalued on a relative value basis.
No bank is perfect. Any trader with experience carries sufficient scar tissue to prove that. This is not an easy acknowledgment to make; But it was Goldman Sachs that correctly identified the structural change in the gold market as early as 2022.
It was Goldman Sachs that issued a buy recommendation on gold when much of the market in 2023 argued:
“The USD correlation says gold should go back down.”
And it was Goldman Sachs’ Lina Thomas who maintained that position when other banks reversed course and challenged the thesis. 2
That historical context does not grant immunity from error. But it does establish why this latest relative value framework between gold and silver deserves careful attention.
What follows is a structured attempt to express the evolving precious-metals regime through a relative value lens. We will add some final comments at the end of our breakdown as well below.
With that context established, the current trade is framed through the gold to silver ratio, where silver’s speculative extension contrasts with gold’s structural accumulation profile.