Silver’s Record Rally Continues, Analysts See Another 20% Upside Potential in Q1 2026

Mumbai: The record run in silver, a best-performing asset this year, shows no signs of ebbing as strong investor demand amid supply pressure could push prices higher. The white metal, which hit a new all-time high above $67 an ounce on international markets on Friday after more than doubling in 2025, could be on track to rise further by as much as 20% in the first quarter of 2026, analysts said. Silver could rise to $70-80 by March, they said, recommending a buy-on-dips investment strategy at these levels. By 2025, it will have risen more than 127.5%.

“Silver’s rally is driven by tight physical supply in London and China as a surge in exports to the US amid higher Comex premiums has created an imbalance or pressure in the physical market,” said Riya Singh, research analyst at Emkay Global. A global surge in demand for silver ETFs, which are backed by the purchase of physical silver, has further intensified the supply squeeze.

“A significant increase in physical silver, driven by retail and high net worth (HNI) investment in ETF products, is now supported by almost two years of global consumer demand,” said Pranav Mer, vice president – ​​commodity and currency research at JM Financial Services.

Silver’s torrid rally follows gold’s record rise as inflationary pressures have boosted demand for precious metals. There’s more to silver’s recent popularity than just its role as a store of value; its increasing industrial use. The metal is increasingly used in solar panels, electric vehicles and AI-related technology industries where investments have increased in recent years.

The upside drivers for silver prices are expected to strengthen further in the coming year. Kaynat Chainwala, assistant vice president of commodities research at Kotak Securities, said China’s plans to restrict silver exports from 2026 could disrupt a key global supply source and further tighten the market.

Naveen Mathur, director of commodities and currencies at Anand Rathi Share and Stock Brokers, said while the supply shortage is likely to persist through 2026-2027, gains may be more muted compared to 2025. “Meanwhile, gold could still outperform in the first quarter of 2026,” he said.SHORT-TERM CAUTION
Silver prices may remain low until 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 closures in key markets.

Chainwala warned that given silver’s inherently high volatility, investors should remain cautious at current levels. “Any sign of a US recession or renewed concerns around an AI-led market bubble could lead to sharp price declines,” she said.