Silver prices are down 1.5% today, continuing a downward trend following a sharp selloff in recent sessions. Bank of America remains optimistic about silver’s long-term potential, projecting prices could reach $100 per ounce by Q4 2026, though they caution that any rally may be temporary. The bank attributes current bullish momentum to rising gold prices, geopolitical tensions, and limited liquidity in the physical silver market, but also warns of weakening industrial fundamentals.
Key concerns include the photovoltaic sector, a significant driver of silver demand, which BofA suggests may have peaked in 2025. Slowing solar panel production in China and potential declines in new installations could further dampen industrial demand, with high silver prices pressuring manufacturers to find alternatives. Additionally, trade negotiations involving major silver suppliers could disrupt market supply, heightening volatility.
Investors should note that while silver may increasingly behave like a precious metal, its market remains highly sensitive to shifts in sentiment and capital flows, presenting both opportunities for sharp rallies and risks of aggressive corrections.
Source: xtb.com