Silver prices reached a new all-time high in Canada this week, climbing above C$127 per troy ounce on Jan. 14, as the metal continues a sharp rally that has outpaced gold in recent weeks.
According to Colonial Acres Coins and Jewelry president Todd Sandham, silver’s rise over the past six to eight weeks has been unusually rapid, driven largely by growing industrial demand. While gold has also hit record levels—topping C$6,400 per ounce—silver has gained about 180 per cent over the past year.
Sandham says demand for silver in electronics, medical applications and renewable energy may now be exceeding global supply, as long-standing stockpiles appear to be depleted. He points to warnings from Elon Musk, who recently noted that higher silver prices could increase costs for products such as electric-vehicle batteries at Tesla.
Another indicator of silver’s strength is the falling silver-to-gold ratio, which has dropped from about 80:1 a few months ago to roughly 50:1 today. During silver’s historic surge in 1980, the ratio fell as low as 15:1.
Sandham believes silver could reach C$200 per ounce within six months to two years. Despite the rally, he says interest remains evenly split between buyers and sellers, suggesting the market has not yet reached a speculative peak.
For those considering selling, current conditions may be favourable. Canadian silver coins minted between 1920 and 1966 are now worth about 75 times their face value, and dealers are paying up to 98 per cent of spot prices amid refinery backlogs and tight supply.
Industry watchers will be closely monitoring demand at the upcoming Canadian Association of Numismatic Dealers show in Hamilton later this month, as signs of a broader silver shortage continue to emerge.