Philip Newman

Although silver accelerated to new highs last December, there has been no sign it will relinquish these gains. Despite index rebalancing generating liquidations in January, this was absorbed by investors, expecting further upside. Furthermore, the liquidity crunch, which underpinned December’s price performance, remains in play. That said, the market awaits the U.S.’s Section 232 announcement. However, even if no action is taken, allowing metal to flow back to London, we remain bullish for silver in 2026. Foremost, there are the drivers laid out in our gold price forecast, which calls for a $5,500 high before year-end. Although gold will be the chief beneficiary of ongoing de-dollarisation and safe-haven buying, silver will also benefit, with a forecast high of $100. Two concerns though are the potential for a sell-off in the copper market, and thrifting and substitution in industrial demand. The latter may take time to resonate with investors, but this is one reason why silver gradually starts to underperform gold in Q4.26. That said, the price will remain historically high, generating a record full year average of $83.