Silver’s record rally continues, analysts see another 20% higher by Q1 2026

MUMBAI: A record-breaking run in silver, the top-performing asset this year, shows no sign of abating on strong investor demand amid supply pressures. The white metal, which hit a new all-time high of $67 an ounce in international markets on Friday after more than doubling in 2025, could rise as much as 20% in the first quarter of 2026, analysts said.

Silver could rise to the $70-80 range by March, they said, adding that the investment strategy at this level suggests buying on the dip. It has grown to over 127.5% in 2025.

“Silver’s rally is being driven by tight physical supply in London and China, as rising exports to the US amid higher Comex premiums have imbalanced or squeezed the physical market,” said Rhea Singh, research analyst at MK Global. A global surge in demand for silver ETFs, supported by purchases of physical silver, has intensified its supply pressure.

“Significant build-up of physical silver driven by retail and high-net-worth individuals (HNI) investments in ETF products is now supported by nearly two years of global consumption demand,” said Pranav Mere, vice-president, commodity and currency research at JM Financial Services.

Silver’s fiery rally has come on the heels of gold’s record surge as inflationary pressures fueled demand for the precious metal. Silver’s recent popularity is about more than its role as a store of value; Its increasing industrial use. The metal is increasingly used in solar panels, electric vehicles and AI-related technologies—industries that have seen increased investment in recent years.

Silver prices are expected to increase in the coming year. China’s plan to ban silver exports starting in 2026 could disrupt a key source of global supply and tighten the market, said Kaynath Chainwala, assistant vice president of commodity research at Kotak Securities.

Anand Rathi Shares and Stockbrokers Director – Commodities and Currencies Navin Mathur said while the supply deficit is likely to continue through 2026-27, the gains may be more moderate compared to 2025. “In the meantime, it could still outperform gold in the first quarter of 2026,” he said.

Near term precautions
Silver prices may remain low till the end of the year. Mathur said prices could consolidate in the remaining sessions of 2025, with trading volumes expected to remain low due to the Christmas holidays and year-end closure of key markets.

Chainwala cautioned that investors should be cautious at current levels given silver’s inherently high volatility. “Any signs of a US recession or renewed concerns around an AI-led market bubble could trigger a sharp pullback in prices,” she said.