It feels like 2025 has been a tough year for investors. But that's only partially true...

U.S. stocks have been on a tumultuous ride. We've seen a brutal decline... followed by an incredible rally. Today, the S&P 500 Index is up 4% year to date.

Earning that 4% took a lot of mental fortitude. But if you invested outside of U.S. stocks, it has been an easier, much more rewarding ride...

Emerging market stocks are up double digits in 2025. Developed markets outside the U.S. are up nearly 20% as a group. And gold has rallied roughly 30%.

The massive gold rally has also created a rare situation. The metal's price recently hit one of its highest levels ever compared with silver. And according to history, that means silver is set to soar from here.

Let me explain...

Everyone knows gold has been on a tear this year. But you may have missed that silver isn't far behind.

Silver is up 26% in 2025. That's only slightly behind gold's roughly 30% gain. But the gold-to-silver ratio still hit one of its highest levels in history recently. And that has created a rare setup...

The Gold-to-Silver Ratio Points to a 40% Rally

This ratio is as simple as it sounds. You just take the price of gold and divide it by the price of silver. When the ratio is high, silver is cheap compared with gold. And that's exactly what we're seeing right now. Take a look...

The gold-to-silver ratio recently broke above 100. That's the second-highest reading ever.

You'll also notice that this ratio moves around a lot over history. So in the chart, I highlighted each major multiyear high. Those don't always happen at the same nominal level. But these highs really matter for both metals' returns.

The table below shows the average returns for gold and silver after those nine previous setups. Take a look...

The first thing to note here is that a high gold-to-silver ratio doesn't mean gold will do poorly. Gold still shows impressive returns over the short term. And its one-year return of 9.7% outperformed gold's typical annual return of 8.6%.

What's more, gold was up a year later in eight of the nine instances. So we can expect gold's impressive rally to continue.

That's just the warmup, though... The real takeaway is that silver is ready to soar from here.

After similar setups, silver jumped 19.3% in three months, 28.5% in six months, and 39.9% in a year. Those are exceptional returns... especially when you realize that silver's typical one-year return is just 5.6%.

Plus, silver was higher a year later 100% of the time. Its smallest one-year gain after this setup was 13%... And every other one-year return topped 20%.

Simply put, gold and silver are both performing well right now. Gold should keep moving higher. But if you want to make the big money, silver is the place to invest today.

Good investing,

Brett Eversole

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