Silver's outlook for 2026 has turned bullish among major banks, with J.P. Morgan Global Research projecting the metal will average about 81 dollars per ounce this year, more than double its 2025 average. The forecast cites steady industrial demand and an ongoing supply deficit as the primary drivers behind the elevated price target.
The metal has been volatile in recent trading. Silver has hovered near 59 to 62 dollars per ounce in early July after pulling back from highs reached earlier in the year, supported at times by a weaker US dollar. Other banks are also constructive, though with a wide range of targets. HSBC upgraded its outlook to roughly 75 dollars per ounce for the year, while Bank of America has forecast an average closer to 56 dollars, reflecting differing views on how quickly demand and supply will move.
Demand fundamentals underpin the optimism. Silver consumption from solar panel manufacturing, electronics, electric vehicle production, and expanding artificial intelligence data center infrastructure continues to draw down available metal each year. Analysts note that global silver demand keeps outpacing newly mined supply, a structural tightness that supports prices over the longer term.
The supply side has been slow to respond. Limited new mine development and constrained recycling have left the market unable to close the gap quickly, a dynamic that bullish analysts expect to persist. For investors weighing silver mining equities, the combination of firm industrial demand, monetary interest during periods of inflation concern, and a muted supply response frames the case that supporters of the metal are making heading into the second half of the year.
Source: J.P. Morgan Global Research - https://www.jpmorgan.com/insights/global-research/commodities/silver-prices