As Silver Prices Rise, Is It Too Late to Invest?
As gold continues to set records, the precious metal’s gains have been enhanced by its counterpart: silver. Silver prices have continued to rise this year as macroeconomic factors – including deficits, global unrest and the continued decline of the US dollar – have revived interest in the safe-haven asset.
Since the second half of 2025, silver has enjoyed a bull run that has resulted in annual gains of 215%, including a 34% gain so far this year.
And while some investors may fear missing out on the precious metal’s rally, other experts say there is still great potential for silver in 2026.
What will silver prices do in 2026?
Buying any asset near a recent high goes against the basic investment concept of buy low, sell high. Still, there’s no shortage of analysts who are convinced that silver’s bull cycle is just getting started, suggesting that those who have missed out on its biggest gains so far could still benefit by investing now.
Despite price increases over the past year, some experts see the precious metal reaching as high as $220 per troy ounce by the end of 2026. That price target implies an upside of about 130% from today’s prices. (The troy ounce is the standard unit of measurement for precious metals, equal to 1.09 ounces.)
Goldman Sachs’ 2026 outlook is limited to an $85 to $100 range. But Bank of America commodities strategist Michael Widmer said he expects an “inevitable and significant price change” this year, estimating “the most appropriate price for silver” is closer to $60 per troy ounce. Widmer told Investing.com that “the recent benchmark rally has been much stronger than we expected,” adding that the metal’s dramatic price appreciation will likely be followed by corrections.
That view is echoed by Brian Spinelli, chief investment officer at Halbert Hargrove, who turns to historical precedent to warn would-be investors.
“We have had three situations in the last 45 years of silver behavior in the last four months of 2025,” he said. “And each of those incidents ended in tragedy for the people who rushed us.”
Spinelli likens the recent parabolic movement of silver to that of the meme coin, with prices rising rapidly in a relatively short period of time, resulting in an upward and unsustainable curve in the price chart. He says investors who may have been chasing last year’s gains should not expect to see them again in 2026. That’s an unexpected situation given silver’s performance since July.
Even the most optimistic analysts’ price targets suggest more sequential gains in the coming year.
That sudden and significant price increase has left silver just 4.33% from hitting $100 per troy ounce, as investors continue to pile into the precious metal as they look to hedge against higher volatility and continued market uncertainty.
These factors help the convergence of silver prices
Silver is currently experiencing a severe supply shortage, and 2025 marks the fifth year in a row that the precious metal has experienced a shortage. In December, the accumulated shortfall reached 1.2 million troy ounces as mining output – which has caused falling ore grades and rising production costs – struggled to keep up with demand.
That deficit has contributed to the increase in institutional purchases. In the second half of 2025, JPMorgan Chase began to unwind its short position in silver, which is estimated at 200 million troy ounces. Since then, the investment bank has reversed course and acquired nearly 750 million troy ounces of silver, making it the world’s largest private holder.
At the same time, the US Mint is facing a silver coin shortage, increasing supply pressure, while China has also diverted silver from general commodities to strategic items. As a result, China is able to impose export controls on the precious metal in the same way that it controls rare earth elements. Similarly, the US Geological Survey added silver to its list of valuable minerals in November.
Silver’s global shortage is also fueled by its industrial applications, which account for 59% of its demand. The metal is used in everything from solar panel photovoltaic cells and AI-critical semiconductors to aerospace thermal management and EV charging infrastructure.
The demand for its industrial applications is expected to continue to grow. Industry consulting firm Grand View Research sees those factors influencing the global silver market to enjoy a compound annual growth rate, or CAGR, of 15.9% through 2030.
But Spinelli points out that industrial demand did not emerge overnight, leading him to question silver’s ability to continue on this trajectory.
“I have no problem [predictions that show] prices go up over time,” he said. “But if the S&P 500 did this in one quarter, everyone would be complaining about how overpriced the market is.”
How investors react
Following another record-setting year for exchange-traded funds (ETFs), silver’s rally led to a record influx of funds backed by the physical metal. Much of that is being driven by retail investors piling into silver ETFs at unprecedented rates.
Last week, Reuters reported that iShares Silver Trust recorded $69.2 million in inflows in Jan. 15 — the largest single-day inflow since 2021 — when individual investors poured $921.8 million into silver ETFs in the 30-day period ending in mid-January.
For those looking to gain exposure at this point, Spinelli recommends balancing positions accordingly.
“There could be another 30% to 40% increase,” he said. “But [silver] He’s had a history of doing this and falling quickly… Something that goes up so fast can come down just as quickly.”
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