Silver still has significant upside potential through 2026

Silver still has significant upside potential through 2026, despite its spectacular surge in 2025 (exceeding 140-150% in many analyses). With the price already surpassing $90/oz in the first weeks of the year and approaching all-time highs, the fundamentals continue to point to further appreciation. Here are the main reasons why silver could continue its upward trend this year.

1. Structural Supply Deficit

The silver market has been experiencing a supply deficit for years (demand exceeds mining and recycling production). This imbalance has been exacerbated by export restrictions from China (the main producer and consumer), resource nationalism, and the slow response from mining companies. Physical stocks are being depleted rapidly, creating sustained upward pressure. Analysts at FXEmpire, the Silver Institute, and multiple banks see this deficit as the main driver for the price to test $100/oz (and even higher) in 2026.

2. Explosive and Growing Industrial Demand

More than 50% of silver is consumed in industrial applications, and this proportion continues to increase. The major drivers are:

• Solar Energy (Photovoltaics) → Global solar panel installations are growing at a double-digit annual rate. Consumption is expected to exceed 200-250 million ounces annually before 2027. New technologies (TOPCon, SHJ) require more silver per watt.

• Electric Vehicles (EVs) → An EV uses between 25-50 grams of silver (2-3 times more than a combustion engine car). With EV production growing at rates of 13-30% annually, this sector will be key.

• Artificial Intelligence and Data Centers → The massive expansion of data centers for AI and cloud computing consumes enormous amounts of electricity and high-conductivity cabling → more silver.

This demand is structural and inelastic to price: the world absolutely needs electrification and digitization.

3. Favorable Monetary Environment and Safe-Haven Role

Although the 2025 rally was brutal, the macroeconomic environment remains positive:

• Expectations of more accommodative monetary policy from the Fed (possible rate cuts or a pause in rate hikes).

• Relative weakness of the dollar.

• Persistent inflation above target.

• Silver as "poor man's gold" → when gold rises (towards $5,000), silver tends to overperform (improving the gold/silver ratio).

Many analysts (Citigroup, JP Morgan, Alan Hibbard, Mike Maloney) see $100 as a realistic target for 2026, with more aggressive projections suggesting $150-$200 if a real supply squeeze occurs.

Conclusion

Silver is no longer just a speculative precious metal: it has become a critical metal for the 21st-century energy and technological transition. The combination of limited supply, insatiable industrial demand, and an accommodative monetary environment creates one of the most powerful bullish setups in recent decades.

Will it reach $100 this year? Many experts say yes, and some are even aiming higher. What seems clear is that, although there will be corrections and volatility (as we are already seeing), the bias remains clearly bullish for 2026.

Disclaimer:

The information provided through this channel does not constitute financial advice and should not be construed as such. This content is for purely informational and educational purposes. Financial decisions should be based on a careful evaluation of your own circumstances and consultation with qualified financial professionals. The accuracy, completeness or timeliness of the information provided is not guaranteed, and any reliance on it is at your own risk. Additionally, financial markets are inherently volatile and can change rapidly. It is recommended that you conduct thorough research and seek professional advice before making significant financial decisions. We are not responsible for any loss, damage or consequences that may arise directly or indirectly from the use of this information.