Silver is entering an exceptional state in 2025 — one the market has scarcely ever seen in modern financial history. Whether it’s physical demand, market structure, or the gold-silver ratio, all data points toward a sustained, structural bull market in silver.
For investors who want to hold real metal, this is a decisive moment. Now is the time to strengthen one’s position and to store it securely, tax-free, and independently in the Swiss high-security vaults of Elementum.
Structural supply deficit reinforces the rally
According to the Silver Institute, the silver market is experiencing a supply deficit for the fourth consecutive year. Reasons:
- Growing industrial demand from the solar industry, electromobility, and electronics.
- Declining production in many mines.
- The increasing importance of physical investments.
The result: Silver is becoming scarcer – and therefore more valuable.
Physical demand is exploding: COMEX deliveries at record levels
The physical silver market is currently sending very clear signals. In September, almost 70 million ounces of silver were requested for actual delivery on the COMEX — one of the highest monthly figures ever recorded. The 12-month average continues to rise as well.
Incrementum AG, publisher of the In Gold We Trust Report, put it succinctly: “Physical silver demand is on fire! The 12-month average keeps surging as more investors choose real metal over paper promises.”
For Elementum clients, this reflects exactly the trend we have been observing for years: More and more people want physical ownership that is stored 100% in their name — duty-free, independent, and accessible at any time.
Silver 1980, 2011, 2025: Same price zone, completely different behavior
Historically, silver has seen sharp pullbacks immediately after reaching the 50 USD level:
- 1980: –30% in 2 weeks and –77% in 10 weeks
- 2011: –35% in 2 weeks and –28% in 6 weeks
But in 2025, silver is behaving entirely differently:
- Rise to 54 USD
- Correction of only 13%
- 6 weeks later still just 8% below the high
- A stable, bullish price structure
This is a powerful signal: Silver is holding its ground at elevated levels — and building trust. That strongly suggests the beginning of a revaluation.
Silver remains historically cheap despite its recent gains
Despite the strong price increase, silver remains extremely undervalued in a historical context. The gold–silver ratio is currently above 80:1 — one of the highest levels since the 1980s and roughly 2.6 standard deviations above the long-term average.
For comparison:
- In the 1930s, this degree of silver undervaluation lasted 3 years.
- In the 1980s, it lasted 2 years.
- Today, it has already persisted for 5 years.
- Historically, such periods have always been followed by a strong catch-up move in silver.
If silver were to return only to the ratio seen in 2011 (around 30), today’s gold price would imply a silver price of over 130 USD.
A rare and important signal: Silver in persistent backwardation
Terms like “backwardation” or “contango” may sound complex, but they are easy to understand when translated into everyday examples.
Spot price vs. futures price: What does it mean?
- Spot price – the globally valid reference price: This is the price for silver today, available for immediate delivery. It is determined primarily through the global cash market, especially via trading on the London Bullion Market Association (LBMA). The LBMA is the world’s most important reference market for physical precious metals. The same LBMA spot price is used by Elementum for purchasing, selling, and for calculating storage value. This ensures that all Elementum prices are based on a transparent, internationally recognized, and uniform market price.
- Futures price: The price for silver that will be delivered at a later date (e.g: in 3 months). This price is traded on futures exchanges, foremost the COMEX in New York (CME Group). The COMEX is the world’s key market for silver futures and determines the term structure (contango/backwardation).
The normal case: Contango
For commodities, it is almost always the case that future delivery is more expensive than immediate delivery. Why? Because storing, insuring, and transporting goods creates costs. This is called contango – and it is the completely normal condition in the silver market.
Backwardation: The exceptional case
Backwardation means the opposite: Today’s price (spot) is higher than the price for future delivery. This only occurs when:
- Buyers need real silver immediately
- And are not willing to wait
- Because physical metal is scarce
Simple comparison: If bread costs 4 EUR today, but bread that will be baked 3 months from now costs only 3 EUR, then the message is clear:
- People need bread now, not later.
- Immediate demand exceeds the available supply.
This is exactly what is happening in the silver market right now.
What backwardation tells us
- Immediate physical demand is higher than available supply.
- Real metal is scarce.
- The paper system (futures) is under pressure – paper prices can be manipulated, but not the term structure.
- The market is signaling stress within the bullion-bank system.
- Historically, such phases are often followed by significant price increases.
In short: When physical silver becomes scarce, those who hold real metal – not paper – are the ones who benefit.
Back then: 50 USD at a ratio of 30. Today: 50 USD at a ratio of 81.
When silver last reached 50 USD in 2011, the gold-silver ratio was 30:1. Today, the same price level is occurring at a ratio of 81:1.
If silver were valued today in the same way it was in 2011 relative to gold, its price would have to be around 136 USD. This means: Silver is significantly cheaper today than it was in 2011 – even though the nominal price looks the same.
What does this mean for investors?
- The physical silver market is in a structural shortage.
- Silver is extremely undervalued by historical standards.
- The market structure signals scarcity, not speculation or hype.
- The recent price increases are more stable than in previous cycles.
- For strategic investors, this represents an exceptional setup — one that has not occurred in this form for decades.
Why Elementum is the ideal partner for physical silver
- 100% physical ownership – no paper claims.
- Duty-free storage in Swiss high-security vaults.
- Tax-free: No VAT on silver purchases stored in the vault.
- 24/7 availability and flexible delivery options.
- Annual auditing by BDO Switzerland.
- Transparent, fair storage fees with no hidden costs.
- Easy online management and immediate liquidity when selling.
- Whether for wealth protection, diversification, or long-term real value creation: Physical silver stored in a Swiss vault offers security, flexibility, and significant tax advantages.
Conclusion: 2025 is a year that will go down in silver history
Silver is at the beginning of a historic revaluation cycle, supported by exceptionally strong fundamentals, record-high physical demand, and a market structure clearly signaling genuine scarcity. Now is the time to enter or expand physical positions, before the market potentially re-rates silver.
Elementum is here to help you implement your silver strategy securely, tax-free, and with full transparency.
Store your wealth where it belongs: Safely, anonymously, and physically in Switzerland.
How can you buy precious metals cheaply and store them safely?
Elementum Deutschland GmbH, based in Sindelfingen (Germany), specializes in trading physical precious metals. Customers who purchase precious metals from Elementum Deutschland (or one of the other national Elementum companies in five European countries) can store them in the renowned high-security vaulting facilities in the St. Gotthard Massif in Switzerland at Elementum International AG.
Of course, you also have the option of purchasing gold and silver directly and having it delivered to your desired address. However, storing silver in the so-called open duty-free warehouse (“offenes Zollfreilager”) at St. Gotthard offers decisive tax advantages:
- The 19% value added tax customary in Germany is completely waived on purchases and sales – a considerable price advantage that effectively secures you 19% more silver for your money.
- If you store your silver in this high-security vault, you can sell it back to Elementum Deutschland GmbH at any time – without any bureaucratic hassle and also without VAT, as the trade takes place within the duty-free warehouse. You will receive the funds via bank wire.
- VAT is only payable when you physically remove the stored silver – either by picking it up in person (after prior notification) or by having it shipped to your address.
More silver, more return
Thanks to duty-free storage, you receive 19% more physical silver when you buy. This additional amount also participates in the performance of the silver price if it rises – a leverage effect that significantly improves your return opportunities.
Secure your storage space now – free of charge and without obligation
Register now for a storage space in the St. Gotthard high-security vaulting facility and receive free access to:
- our General Terms and Conditions (GTC)
- current fee tables
- annual audit reports from the auditing company BDO AG
- transparent proof of use of funds
- family discount information
- the popular children’s program “Schatz4Kids” (“Treasure4Kids”)
- as well as numerous other documents and information on storage, purchase, and resale, as well as the ratio “switching” strategy.
Register now: https://silberbar.elementum.de/
Tip for discounted entry: Enter the promotional code “50” (“Aktionscode“) and the “Vermittler” number 1000166 when registering to receive a 50% discount on the storage space setup fee.
Important: Registration is non-binding and does not commit you to anything – but it is your first step towards an independent and crisis-proof precious metal investment.
Elementum is a second-generation, owner-managed family business. Trust, consistency, and long-term thinking are at the heart of our philosophy. The Board of Directors of Elementum International AG is composed of internationally renowned experts in the money and precious metals markets, including economists, analysts, university professors, and precious metals specialists. This in-depth expertise forms the backbone of our actions—for your security, your assets, and your future.
About the Author
Stephan Bogner
CEO of Elementum International AG
Stephan Bogner, who holds a degree in business administration, studied economics at ISM Dortmund (Germany) and wrote the university’s first thesis on precious metals as a hedge against inflation. After studying in the UK and Australia and gaining professional experience in Dubai, he took over as CEO of Elementum International AG in Switzerland in 2012. His expertise in precious metals has had a significant impact on the company’s development.
Contact
Rockstone News & Research
Stephan Bogner (Dipl. Kfm., FH)
Müligässli 1, 8598 Bottighofen
Switzerland
Phone: +41-71-5896911
Email: info@rockstone-news.com
Disclaimer: This article reflects the personal opinion of the author. Elementum assumes no responsibility for the accuracy of the content and accepts no liability for its use. This article may contain links to external third-party websites. Elementum is not responsible for the content of these external sites and expressly distances itself from all information provided there. At the time the links were created, no unlawful content was identifiable. This article does not constitute a recommendation to buy or sell. Elementum International AG is a Swiss company that specializes exclusively in the storage of physical precious metals in a high-security vault facility located in the St. Gotthard mountain massif in Central Switzerland. The Board of Directors and Executive Management of Elementum International AG have been selected solely based on their professional expertise and long-standing experience in precious metals markets. As these individuals may also be professionally active outside their roles at Elementum International AG, the company has no influence over their external activities and respects their right to freedom of expression. Therefore, the views expressed by persons working with or for Elementum do not necessarily reflect the opinion of Elementum International AG. Investments in precious metals are subject to risks, including those specific to the structure of this market. Please read our full risk disclosures and consult a licensed financial advisor before making any investment decisions. Neither the author, Elementum International AG, nor Elementum Deutschland GmbH assume any liability for actions taken based on the information provided. Past performance is not indicative of future results. The cover picture has been obtained and licenced from Shutterstock.com.
