The global silver market is experiencing a significant surge, with prices reaching approximately $64 per ounce this week. This rally comes as the market grapples with a persistent supply deficit, now entering its fifth consecutive year. Industry analysts project that this tightening supply, coupled with robust demand, could push silver prices to $100 per ounce by the end of 2026.^{[1][2][3][4][5]} ### Deepening Supply Shortages Fuel Price Gains The silver market has faced a structural supply shortfall for five straight years, accumulating a deficit approaching 800 million ounces between 2021 and 2025.^[1][6][7][8] Annual deficits have ranged from 95 million to 200 million ounces, highlighting a consistent imbalance between what the world produces and what it consumes.^{[1][9][6][10][8][11]} Mine production remains largely flat, hovering around 813 million ounces annually, struggling to keep pace with rising demand.^[5][6][12] Recycling efforts provide some additional supply, but not enough to close the widening gap.^[5] This enduring shortage has driven silver prices to new highs. On December 11, 2025, spot silver hit a record of $62.88 per ounce, surpassing the $60 mark for the first time in history.^[13] Just days later, the price settled around $64.28 to $64.69 per ounce.^[2][3][4] This significant increase reflects growing investor interest and a fundamental shift in market dynamics. ### Industrial Demand and Investment Drive Growth Industrial use stands as a major catalyst for silver's soaring demand. Sectors like solar energy, electronics, electric vehicles (EVs), artificial intelligence (AI) compute servers, and data centers rely heavily on silver's superior electrical and thermal conductivity.^{[4][5][10][13][8][14][12]} Industrial fabrication hit a record high in 2025, underscoring this robust demand.^[5] For example, the photovoltaic (PV) industry's silver consumption is projected to double from 2022 levels by 2025, reaching 7,560 metric tons.^[10] Electric vehicles, especially battery-electric models, consume significantly more silver—between 67% and 79% more—than traditional internal combustion engine vehicles. In^[14]vestment demand also plays a crucial role. Many investors are reallocating assets to silver, viewing it as both an industrial commodity and a hedge against macroeconomic uncertainty, inflation concerns, and currency volatility. Sil^[5][11]ver-backed exchange-traded products (ETPs) have seen significant inflows, further tightening the available supply. Add^[9][10][11]ing to the supply crunch, inventories at the London Metal Exchange (LME), a major trading hub, have plummeted by approximately 75% from their 2019 peak. Chi^[10]na's announcement of strict silver export controls for 2026 has further accelerated demand as fabricators rush to secure materials. ## Analysts Project $100 Silver by 2026 With the prolonged supply deficit and escalating demand, many experts are bullish on silver's future price trajectory, with some forecasting a jump to $100 per ounce. BNP Paribas suggests silver could climb to $100 per ounce by the end of 2026. Kei^[5]th Neumeyer, CEO of First Majestic Silver, has consistently predicted that the white metal could hit $100 or even $130 per ounce, citing the consistent deficit and its undervalued status compared to gold. Br^[15]andon Aversano, CEO of precious metals buyer The Alloy Market, believes silver could reach $100 during the current bull run. He explained, "As we see the demand for physical silver increase, including central banks purchasing silver in the form of kilobars, available supply and manufacturing capacity decrease. This squeeze could push the price of silver over $100 per troy ounce." Pau^[16]l Williams, Managing Director at Solomon Global, also echoed this sentiment, stating that silver could more than double by the end of 2026, reaching $100. Hi^[13]storically, silver has demonstrated its capacity for dramatic price surges during periods of economic distress and high inflation. Experts note that if adjusted for inflation, silver's 1980 surge was equivalent to nearly $200 per ounce today, making a $100 target more realistic. Whi^[16]le a rapid ascent over weeks is unlikely, a gradual climb over years is a distinct possibility. Th^[16]e ongoing structural imbalances, combined with its vital role in green technologies and the broader industrial sector, position silver for continued upward price pressure.

AI Insights Hub