Silver has pulled back sharply from its early-2026 record even as the metal's underlying supply shortfall shows no sign of closing. After reaching an all-time high near 121.62 dollars per ounce in January 2026, silver fell roughly 42 percent and traded near 64.83 dollars per ounce by June, a decline that followed a run of more than 150 percent from the start of 2025.
Despite the correction, market fundamentals remain tight. Analysts point to a sixth consecutive annual supply deficit, with the shortfall widening rather than narrowing. Institutional forecasts have moved higher in response. J.P. Morgan Global Research projects silver averaging about 81 dollars per ounce in 2026, more than double its 2025 average, while a Reuters poll of analysts pointed to a 2026 average near 79.50 dollars per ounce.
United States policy has become a factor in the market. After silver was added to the U.S. Geological Survey list of critical minerals, concern that Washington could impose tariffs on the metal prompted aggressive stockpiling. Large volumes flowed into Comex-linked vaults in New York, and silver-backed exchange-traded funds absorbed more than 100 million ounces.
Demand drivers are shifting. Growth in data centers, electric vehicle electronics, and automotive applications is picking up industrial consumption even as solar manufacturers reduce the amount of silver used per panel. At a gold-to-silver ratio near 61.7, some analysts view silver as modestly undervalued relative to gold by historical standards. With interest rates easing and the dollar under pressure, forecasters expect prices to stay elevated and volatile.
Source: GoldSilver -- https://goldsilver.com/industry-news/article/silver-price-outlook-june-2026/