Silver Price Forecast: Silver Holds Above $107 as Structural Bull Market Takes Shape

By Patrick Timely

Silver continues to trade near historic highs after a powerful multi-month rally, with spot prices holding around $107.19 at the time of writing. The metal recently set a new all-time high near $110.55, underscoring the strength of the current uptrend as both macro and industrial drivers converge.

After gaining more than 50% since the start of 2026, silver has entered what several institutions now describe as a structural bull market. Unlike previous cycles driven largely by speculative inflows, the current move is underpinned by persistent physical deficits, expanding industrial demand, and a renewed role for precious metals as portfolio hedges amid geopolitical and policy uncertainty.

Silver breaks into a structural bull market

Silver surges to record highs as XAG/USD breaks above $110, reflecting aggressive momentum and heightened volatility. Source: TradingView

OCBC Group Research recently revised its silver forecasts sharply higher for both 2026 and 2027, citing a combination of supply inelasticity, regulatory shifts in China, and stronger-than-expected industrial demand. According to OCBC strategist Christopher Wong, it is not just the direction of silver’s move that stands out, but the speed and magnitude of the rally.

Silver’s dual identity continues to play a central role. On one hand, it behaves like a precious metal, benefiting from safe-haven flows as investors hedge against geopolitical risk and monetary uncertainty. On the other hand, it remains a critical industrial input, with demand tied to long-term investment cycles in energy, electrification, and digital infrastructure.

Industrial demand tightens the physical market

Industrial demand has become one of the most important structural drivers behind silver’s strength. Solar photovoltaic manufacturing remains the single largest source of consumption, and newer cell technologies such as TOPCon and HJT are increasing silver intensity per watt. This effect compounds the growth from both distributed and utility-scale solar installations.

Beyond renewables, data centers have emerged as an underappreciated source of demand. Nearly 100 gigawatts of new global data center capacity are expected to be added between 2025 and 2030, effectively doubling installed capacity. Silver’s superior electrical and thermal conductivity makes it increasingly valuable in control electronics, power switching, and thermal interfaces.

This view aligns with Citi’s bullish forecast for silver beyond $100, where analysts pointed to tight physical inventories, rising industrial demand, and geopolitical uncertainty as drivers of continued upside.

At the same time, global supply remains constrained. Roughly 70% of silver production is sourced as a by-product of other metals such as copper, zinc, and gold, limiting the industry’s ability to respond quickly to higher prices. Market deficits have persisted since 2018, with another shortfall expected in 2026.

China’s new export licensing regime, implemented at the start of the year, has added another layer of tightness. While not an outright ban, the shift reduces export flexibility and reinforces what analysts describe as a more durable availability constraint.

Short-term volatility, long-term momentum

XAG/USD seven-day price action shows silver consolidating near record highs after a volatile breakout. Source: CoinCodex

From a technical perspective, silver’s rally has been sharp enough to warrant caution in the near term. Prices briefly spiked to $117.74 earlier this month before pulling back, highlighting the risk of fast corrections during vertical moves. Momentum indicators such as the RSI remain elevated, though not yet at extreme levels historically associated with cycle tops.

Key support now sits near the $100 level, with deeper demand zones around the mid to high $90s. On the upside, a sustained move back above $110 would refocus attention on the $120 area, which several traders view as a psychological and technical threshold.

CoinCodex’s 6-month silver price forecast

CoinCodex model projections outline a wide range of potential silver price paths through mid-2026. Source: CoinCodex

According to CoinCodex’s silver price prediction, the metal’s average price could rise from the low $100s in early 2026 toward the $200 to $300 range by spring, with more aggressive scenarios extending significantly higher into the second half of the year.

By July 2026, CoinCodex’s model outlines a wide range, with average prices near $707 and potential highs approaching $873. These projections assume continued momentum, sustained deficits, and stable macro tailwinds, conditions that may not hold consistently in such volatile markets.

As with all quantitative models, these forecasts are best viewed as scenario frameworks rather than base-case outcomes. Silver’s history of sharp swings suggests that even within a broader bull market, drawdowns can be severe and sudden.

Source:: Silver Price Forecast: Silver Holds Above $107 as Structural Bull Market Takes Shape