(April 2025)
Gold Bullion vs. Silver Bullion Price (April 2025)
Gold Bar Price
1) As of May 2025, the price of gold is trading at around $2,900 to $3,000 per troy ounce. (Converted to domestic prices, 1kg gold bar is worth about 100 million won, including VAT)
2) Gold has been consistently breaking its all-time highs in recent years, and continues to strengthen due to various factors such as global inflation, geopolitical risks, and central bank purchases.
Silver Bar Price
1) As of May 2025, the price of silver is around $32-$34 per troy ounce.(A 1kg silver bar is being traded at around 1.2-1.3 million won in domestic prices.)
2) Silver has risen by more than 15% in the past year, but has not yet reached the all-time high (around $50) recorded in 2011.
Comparison of gold and silver bullion prices ( May 2025)
Classification Price per troy ounce Price per kg (KRW) Comparison of recent 1-year fluctuation rates. Gold is about $2,900-$3,000, about 100 million won +8-10%, silver is about $32-$34, about 1.2-1.3 million won +15%
Undervaluation of silver based on the gold/silver ratio
(The gold-silver ratio refers to the number of ounces of silver needed to buy 1 ounce of gold)
2025yr, The gold-silver ratio is about 88-91:1, which is much higher than the historical average (50-60:1), and the price of 1 ounce of gold is equivalent to 88-91 ounces of silver, suggesting that silver is relatively undervalued.
For reference. Compared to the past when the gold-silver ratio was low (e.g. 15:1 in 1980), it is possible to interpret that the price of silver is significantly cheaper than that of gold.
Why is silver undervalued compared to gold?
1) Industrial demand and price volatility
More than half of the total demand for silver comes from industrial use (electronics, solar power, batteries, etc.). It is sensitive to economic fluctuations and has greater price volatility than gold. On the other hand, gold is mainly used as a safe asset, central bank holdings, investment, and jewelry, so its price is stable.
2) Gold’s safe asset premium
Gold has been in the spotlight as a means of preserving asset value during global financial crises, inflation, and geopolitical instability, and its price has steadily increased. On the other hand, silver is greatly influenced by industrial demand, so demand may decrease and its price may weaken during economic slowdowns. 3) Gold-Silver Ratio Historical Average and Deviation
2025yr, the gold-silver ratio is 88~91:1, which is significantly higher than the long-term average (50~60:1), highlighting the relative undervaluation of silver. Historically, when gold surges, silver tends to surge as well, but recently, gold’s rise has been much larger than silver’s.
3) Silver’s Upside Potential
Silver is still undervalued by more than 30% compared to its all-time high in 2011 (around $50). Experts predict that if factors such as industrial demand recovery, expansion of green energy, and central bank interest rate cuts come together, silver prices have ample room to rise further in the medium to long term.
TOMOYU 