Metals Focus forecasts that silver will average $84.40 an ounce in 2027, a 16 percent increase from a projected 2026 average of $72.60. Matthew Piggott, the firm's Director of Gold and Silver, outlined the view in a Kitco News interview published October 19. The consultancy expects prices to rise above $90 an ounce in the fourth quarter of 2027.
The forecast accompanies a shift in the physical market. Metals Focus projects a silver deficit of 35.4 million ounces this year turning into a surplus of 37.3 million ounces in 2027. Higher prices are encouraging industrial users to cut consumption, particularly in photovoltaics, where manufacturers have steadily reduced the silver in each solar panel. Metals Focus expects industrial silver demand to fall to 618.2 million ounces in 2027 from 640.2 million ounces this year. Piggott said the solar industry has passed the point where efficiency gains outweigh installation growth. Growing silver use in electric vehicles and data centers should offset part of the photovoltaic decline over the next 12 months.
Piggott said investor participation is expected to become the main driver of higher silver prices. Retail demand for bars and coins has been subdued since a surge in January, with selling back to dealers offsetting new purchases, and he expects seasonal buying to improve physical investment demand late in the year.
Metals Focus also expects elevated energy prices and interest rate expectations to keep near-term pressure on precious metals. The firm forecasts gold averaging $5,330 an ounce in 2027, up 16 percent from a projected $4,600 this year, and says institutional buying has supported gold above $4,000 an ounce.
Source: Kitco News - https://www.kitco.com/news/article/2026-10-19/golds-path-6000-and-silvers-return-above-90-depend-renewed-investor