Silver prices dropped below $50 an ounce for the first time since November 2025, as concerns about industrial demand and tighter U.S. monetary policy weighed on the metal. Front-month Comex November silver fell 4.31% to $49.89 an ounce, extending its underperformance relative to gold. The gold-silver ratio moved above 76 for the first time since December, after spending much of the summer between 60 and 70.
The divergence between gold and silver is becoming more pronounced. Gold continues to benefit from central-bank purchases and long-term investors seeking protection against geopolitical and macroeconomic uncertainty. Silver, however, is more exposed to industrial demand and speculative investment flows, making it vulnerable to weaker manufacturing activity or higher interest rates.
Both gold and silver came under pressure after stronger-than-expected U.S. GDP data strengthened expectations that monetary policy could remain tighter for longer. Higher interest rates pressure non-yielding assets like silver while raising concerns about demand-sensitive parts of the economy. Naeem Aslam, chief investment officer at Zaye Capital Markets, warned that silver's heavy exposure to industrial applications makes it particularly vulnerable to weaker manufacturing activity.
The move below $50 is psychologically important, but the gold-silver ratio may be an even better signal of whether the weakness has run its course. Investors should watch U.S. interest-rate expectations, manufacturing activity, physical silver demand, supply constraints, and whether the gold-silver ratio continues moving toward its longer-term average.