Silver has driven one of the most dramatic moves in the precious metals market in 2026, climbing to a record high of $121.62 per ounce on January 29 after breaking above $100 just days earlier. The metal opened the year near $74 per ounce, building on a rally that had already shattered its previous record of $49.95 set in October 2025.
The rise rests on a persistent supply shortfall. The market is in a multi-year deficit, with one industry forecast projecting a shortfall in 2026 as total demand outpaces supply. Tightening fundamentals, driven by industrial use including photovoltaics, continue to pressure available inventories.
US mining companies have moved to capture the gains. First Majestic reported record first-quarter 2026 revenue of $477 million, up 95% year over year, on a 26% increase in silver production, and generated record operating cash flow of $311 million. Other major producers including Pan American have expanded output to meet demand.
Forecasters differ on where prices settle. Commerzbank projects silver near $90 by year end and $95 by the end of 2027, while UBS expects an average closer to $85 by the end of 2026. Analysts cite expected US Federal Reserve rate cuts as a supporting factor, since lower rates reduce the appeal of cash and short-term bonds and tend to push investors toward hard assets. The combination of record prices and a structural deficit has kept silver among the most closely watched assets of 2026.
Source: Investing News Network - https://investingnews.com/daily/resource-investing/precious-metals-investing/silver-investing/silver-forecast/