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Silver Soars 158% in 2025: Analysts Eye $100 Per Ounce by 2026

Silver has delivered an exceptional 158% return year-to-date in 2025, fueled by strong industrial demand and a significant supply deficit. Analysts believe a combination of Federal Reserve rate cuts, a weaker dollar, and sustained industrial use could push prices toward $100 per ounce by 2026. Key demand drivers include the solar energy sector, electric vehicles, and semiconductors, while geopolitical tensions are boosting safe-haven appeal. However, reports caution that overvaluation risks, potential ETF outflows, and possible substitution in industrial applications could weigh on the rally.

Key Points: Silver Price Forecast: $100/Ounce Possible by 2026

  • 158% YTD Rally
  • Industrial & Green Energy Demand
  • Multi-Year Supply Deficit
  • Fed Rate Cuts & Weaker Dollar
2 min read

Silver rallies 158 pc YTD, $100 per ounce possible in 2026: Analysts

Silver surged 158% YTD in 2025. Analysts see potential for $100/oz by 2026, driven by industrial demand, supply deficits, and Fed rate cuts.

"Overall, our outlook for silver is constructive with multiple tailwinds sustaining its rally even as valuations stretch. - Axis Mutual Fund Report"

New Delhi, Dec 27

Silver has delivered exceptional returns of 158 per cent year‑to‑date in 2025, with domestic spot rates rising nearly Rs 1,45,000 per kg or around 170 per cent this year.

Strong industrial demand, tight supply, robust ETF inflows and US Federal Reserve rate cuts and hopes of additional cuts could even take silver to $100 per ounce, analysts said.

Industry experts said that key demand drivers for silver include industrial use in electric vehicles, solar, semiconductors and data centres.

Further a multi‑year structural supply deficit - 148.9 million ounces in 2024, has buoyed investor sentiments along with expectations of further Fed easing of 0.75 per cent and at least two rate cuts next year. A weaker dollar, geopolitical tensions are also boosting precious‑metal demand beyond industrial use.

Geopolitical tensions have increased due to the US blockade of Venezuelan crude, Russia-Ukraine hostilities, and US military strike against ISIS in Nigeria. The US Coast Guard this month seized a super tanker under sanctions carrying Venezuelan oil and tried to intercept two more Venezuela‑related ships over the weekend heightening tensions.

MCX silver March futures had touched an intraday high of Rs 2,32,741 per kg on Friday. Several analysts now view the $100 per ounce milestone as attainable in 2026, with the majority of them predicting $70-$85 per ounce range for silver next year, adding that silver's high‑beta nature could accelerate gains once major resistance levels are breached.

Regarding silver's outlook in 2026, a recent report from Axis Mutual Fund warned overvaluation could lead to ETF outflows or a downturn in copper could also weigh on prices.

"Overall, our outlook for silver is constructive with multiple tailwinds sustaining its rally even as valuations stretch," the report said.

Central Banks' preference for gold over silver may limit its official demand support. Possible substitution in industrial uses also poses a risk.

- IANS

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Reader Comments

P
Priya S
While the rally is impressive, the article rightly points out risks like overvaluation and substitution. As an investor, we must be cautious. Everyone is rushing in now, but what happens when the music stops? A correction could be sharp.
R
Rohit P
The industrial demand angle is key. Solar panels, EVs, semiconductors - this isn't just a precious metal story anymore. It's a tech and green energy story. This gives the rally a solid fundamental base, unlike pure speculation.
S
Sarah B
$100 per ounce seems like a very optimistic target. The geopolitical tensions mentioned are real, but silver is so volatile. I hope small retail investors in India don't get carried away and invest money they can't afford to lose.
V
Vikram M
Chalo, at least some good news for a change! With inflation still a concern, such assets are important for protecting savings. My wife's silver jewellery is now worth a lot more, though we'd never sell it 😅. It's a good time to review your portfolio.
K
Karthik V
The supply deficit is the real story here. You can have all the demand in the world, but if mining can't keep up, prices have to go up. Interesting that central banks prefer gold, but for industry, silver is irreplaceable in many applications.

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