Can Silver Prices Keep Rising in 2026? The Case for Continued Gains

The white metal is entering 2026 at a pivotal moment. After surging through 2025 from below $30 to over $60 per ounce—marking the highest levels in over four decades—investors are asking whether silver prices will continue their upward trajectory. Recent market dynamics suggest multiple structural forces could support further advances, though volatility remains a defining characteristic of this precious metal.

The Structural Supply Shortage That Won’t Go Away

One of the most compelling reasons silver prices may continue upward is the market’s entrenched supply deficit. Metal Focus forecasts that 2025 will mark the fifth consecutive year of supply shortfall, with the deficit expected to persist into 2026 at approximately 30.5 million ounces, following a more severe 63.4 million ounce shortfall in 2025.

The challenge isn’t temporary. Silver mine production has declined over the past decade, particularly in major mining regions of Central and South America. More critically, about 75% of silver comes as a by-product of mining for gold, copper, lead, and zinc. This means miners have limited incentive to increase production purely for silver, even when prices reach record levels. Peter Krauth of Silver Stock Investor explained that when silver represents only a small portion of mining revenue streams, producers lack motivation to boost output.

The response time to price signals is glacially slow in the mining sector. Bringing a new silver deposit from discovery through production typically takes 10 to 15 years. Meanwhile, above-ground silver inventories continue to tighten, with stocks at the Shanghai Futures Exchange hitting their lowest levels since 2015, signaling genuine physical scarcity rather than mere speculation.

Industrial Demand Accelerates as Cleantech and AI Expand

Industrial demand emerged as a major price driver in 2025 and shows every sign of intensifying through 2026. The Silver Institute identified heavy demand through 2030 coming from renewable energy sectors—particularly solar panels and electric vehicles—alongside emerging technologies like artificial intelligence and data center infrastructure.

Solar energy represents an especially potent growth vector. Frank Holmes of US Global Investors noted that silver’s transformative role in renewable energy infrastructure is an outsized factor in recent price appreciation. With concerns about energy demands from expanding AI data centers, the trajectory becomes even more compelling. Approximately 80% of U.S. data centers are located domestically, with electricity demand projected to grow 22% over the next decade. AI-specific energy consumption is expected to surge 31% during the same period. Notably, U.S. data centers have chosen solar power five times more frequently than nuclear options for new capacity.

This industrial absorption is structural and accelerating. The U.S. government’s decision to include silver on its critical minerals list reflects recognition of these economically essential applications. With industrial usage expanding across multiple high-growth sectors simultaneously, this demand foundation appears durable for 2026 and beyond.

Investment Demand and Safe-Haven Appeal Magnify Tightness

Beyond industrial consumption, investment demand has become a powerful secondary force. As a more affordable alternative to gold, silver attracts significant retail and institutional capital seeking portfolio protection. Exchange-traded fund inflows reached approximately 130 million ounces in 2025, bringing total silver-backed ETF holdings to roughly 844 million ounces—an 18% increase that reflects shifting investor sentiment.

Concerns about U.S. Federal Reserve independence and the potential policy shift toward lower interest rates create an environment where investors actively seek real assets. Silver’s historical role as a store of value and hedge against currency weakness positions it favorably. In India, traditionally a gold jewelry market, silver is gaining momentum as buyers migrate toward more affordable precious metal alternatives, with demand for silver jewelry, bars, and ETFs rising visibly.

This investment appetite has already created visible market strain. Mint shortages in silver bars and coins have emerged across multiple markets. Futures market inventories in London, New York, and Shanghai show tightness that translates to rising lease rates and elevated borrowing costs—indicators of genuine physical scarcity. Julia Khandoshko, CEO at Mind Money, observed that “the market is characterized by real physical scarcity: global demand is outpacing supply, India’s buying has drained London stocks and ETF inflows are tightening things even more.”

What Analysts Expect for Silver Price Movement in 2026

Despite the bullish fundamental backdrop, expert price projections for 2026 remain cautiously framed, reflecting silver’s notorious volatility. Krauth views $50 as the new support floor and offered a “conservative” forecast of silver reaching the $70 range during 2026, aligned with Citigroup’s prediction that silver will continue outperforming gold and reach upwards of $70, assuming industrial fundamentals hold.

More optimistic forecasters see greater upside. Frank Holmes projects silver could reach $100 in 2026, a view shared by Clem Chambers of aNewFN.com, who characterizes silver as the “fast horse” among precious metals. Chambers emphasizes that retail investment demand, rather than industrial usage alone, represents the true “juggernaut” driving prices higher.

Importantly, risks to this positive scenario exist. A global economic slowdown or sudden liquidity corrections could exert downward pressure. Khandoshko advised monitoring industrial demand trends, Indian import patterns, ETF flows, and the sentiment around large unhedged short positions. “If trust in paper contracts weakens again, we could see another structural shift in pricing,” she noted.

For investors considering silver price trajectories in 2026, the interplay between these structural factors—supply constraints that resist near-term correction, accelerating industrial demand from high-growth sectors, and flight-to-safety investment positioning—creates a framework where silver prices have multiple potential support mechanisms. Whether prices will keep rising depends ultimately on how these forces evolve and whether external shocks disrupt the fundamental demand story.