Silver delivered one of the most dramatic moves in the precious metals market entering 2026, climbing more than 150 percent from the start of 2025. The metal reached a new high near 92 dollars in mid-January, surged past 100 dollars later that month, and touched an all-time high of 121.62 dollars on January 29.
Institutional forecasts for the year vary as the market digests the rally. J.P. Morgan expects silver to average 81 dollars per troy ounce in 2026, while UBS set a target of 85 dollars through the middle of the year. A more moderate base case projects prices in the 70 to 80 dollar range, consistent with steady demand and ongoing supply shortfalls.
The rally rests on a multiyear structural deficit. Demand exceeded mine supply by roughly 160 to 200 million ounces in 2025, and limited new mining projects mean the imbalance is likely to continue into 2026. Industrial uses now account for more than half of global silver demand, with solar power, electric vehicles, electronics, and AI hardware among the fastest-growing categories.
Mining companies are positioned around the trend. First Majestic generates a peer-leading 66 percent of revenue from silver in 2026 and raised its dividend sharply in the first quarter. Pan American Silver, which bills itself as a premier silver producer, closed its 2.1 billion dollar acquisition of MAG Silver in 2025. Analysts caution that extreme price swings are likely to persist in both directions.
Source: Investing News Network - https://investingnews.com/daily/resource-investing/precious-metals-investing/silver-investing/silver-forecast/