Will silver hit $100 in 2026? Here's what experts say
What's the story
Silver prices have witnessed a remarkable surge this year, driven by strong industrial demand and tight supply. The metal's value has also been supported by robust inflows into exchange-traded funds (ETFs) and rate cuts by the US Federal Reserve. Internationally, silver prices have skyrocketed 158% year-to-date, while domestic spot silver prices have surged to nearly ₹1,45,000 per kg or almost 170% this year so far.
Market dynamics
Industrial demand and supply constraints drive silver prices
The surge in silver prices is largely attributed to strong industrial demand from sectors like electric vehicles (EVs), solar energy, semiconductors, and data centers. This comes amid tight supply conditions. In 2024, global silver demand outstripped supply for the fourth consecutive year, creating a structural market deficit of 148.9 million ounces, according to data from the Silver Institute.
Economic impact
US Federal Reserve's rate cuts influence silver prices
The US Federal Reserve's overall 0.75% point rate cut and expectations of at least two more cuts next year are also key factors influencing silver prices. Some experts believe that the fear of missing out on gold's 72% surge this year could be driving investors toward silver, expecting continued strong industrial demand.
Price forecast
Silver futures approach $80 mark
On December 26, silver futures rose to $79.70 per troy ounce. Experts believe the precious metal could hit the $100 mark in 2026. Ravinder Sharma, Senior Commodity Research Analyst at SMC Global Securities, said that "the long-discussed $100 per ounce level is no longer viewed as a purely speculative projection."
Price drivers
Factors influencing silver prices
Sharma noted that the consensus for next year currently places silver in the range of $70 to $85 per ounce. However, its high-beta characteristics mean once major resistance levels are breached, price movements tend to accelerate more rapidly than those of gold. Jigar Trivedi, Senior Research Analyst at Reliance Securities, highlighted a multi-year supply deficit with global mine output lagging demand and above-ground inventories declining.
Statement
What did IBJA say?
Aksha Kamboj, Vice President for India Bullion and Jewellers Association (IBJA), noted that industrial demand from solar panels, EV cars, semiconductors, and energy investments has led to supply deficits. She emphasized the importance of silver as a key industrial metal in today's energy transformation landscape. Geopolitical tensions and a weakening US dollar index are also pushing safe-haven investments and speculation in favor of silver prices.