Silver enters the second half of 2026 with a constructive outlook from major banks even after a steep correction from record territory. J.P. Morgan Global Research projects silver will average about $81 per ounce in 2026, more than double its 2025 average. The metal reached an all-time high of $121.62 per ounce in January 2026 before pulling back roughly 42 percent, trading near $74 per ounce in late May.
Other banks remain bullish. Citigroup set a second-half 2026 target of $110 per ounce, pointing to acute physical supply shortages. The case rests on a market heading for its sixth consecutive annual supply deficit, with mine supply contracting faster than industrial demand is falling.
Demand is shifting in composition. Sustained high prices pushed solar manufacturers to cut the amount of silver used per panel by roughly 19 percent, and jewelry demand fell to multi-year lows. Investment demand moved the other way, with global coin and bar demand rising 14 percent in 2025 as buyers sought physical metal.
For producers, the combination of firm prices and a structural shortfall supports margin expansion, whether they are primary silver miners or base-metal operators that recover silver as a by-product. Analysts caution that 2026 is likely to bring wide price swings rather than a steady climb, given thin above-ground inventories and volatile investment flows. The medium-term picture, supported by depleting stockpiles, continues to underpin prices.
Source: J.P. Morgan Global Research - https://www.jpmorgan.com/insights/global-research/commodities/silver-prices