BMO Gold Silver Ratio Jan 2026 – Why BMO Favors Gold Over Silver?
As of mid-January 2026, BMO Capital Markets has issued a cautious outlook on the Gold-to-Silver ratio, suggesting that the current market trend significantly favors gold over silver for the remainder of the year.
While the market spot ratio has recently hit a 13-year low, BMO’s internal forecasts imply a much higher ratio as they expect silver to face a price correction.
Current Market VS. BMO Forecast (2026)
The gold-to-silver ratio represents how many ounces of silver it takes to buy one ounce of gold. A lower ratio means silver is outperforming gold; a higher ratio means gold is outperforming silver.
| Metric | Current Spot Market (Jan 2026) | BMO 2026 Forecast (Average) |
| Gold Price | ~$4,615 /oz | $4,550 /oz |
| Silver Price | ~$91.80 /oz | $56.30 /oz |
| Implied Ratio | ~50:1 | ~80.8:1 |
BMO’s Key Insights
- The “Overbought” Warning: BMO analysts have warned that silver’s recent surge to over $90/oz (a nearly 170% increase since early 2025) is likely unsustainable. They view silver as currently “overbought” compared to gold.
- Gold Outperformance: BMO projects gold to be the primary performance driver in 2026. Their price target for gold recently upgraded to $4,600/oz, driven by “dedollarization” and its role as a stable anchor in multi-asset portfolios.
- Physical Surplus: BMO’s updated models suggest that the supply deficit in silver is narrowing. They forecast a growing surplus of physical units in the coming years, which historically causes the gold-to-silver ratio to increase.
- Industrial Demand Peaking: The bank noted that silver demand from the solar power sector may have passed its peak, potentially leading to silver underperforming gold in the mid-to-long term.
Investor Takeaway
While the current ratio of 50:1 is the lowest seen since 2012, BMO’s analysis suggests a reversal toward the 80:1 range. In the “80/50 rule” of precious metals trading:
- Ratio > 80: Silver is considered undervalued (buy silver).
- Ratio < 50: Silver is considered overvalued (rotate into gold).
BMO’s current stance is that investors should be cautious with BMO Gold Silver Ratio, as they expect gold to “outshine” the white metal throughout 2026.
About Author
-
Isabella Jack is a versatile writer and digital content creator specializing in tech-driven narratives and insightful news reporting. With a focus on the intersection of emerging technology and daily life, she crafts engaging content that simplifies complex topics for a global audience.
When she isn’t documenting the latest shifts in the digital landscape, Isabella explores the nuances of SEO strategy and the evolving world of AI-assisted journalism.
