Silver prices surge to historic highs! Is there still room for growth in 2026?
Silver prices have reached a historic high and are expected to have room for further increases in 2026 due to supply and demand tensions and the impact of the Federal Reserve's interest rate cuts. Since the beginning of 2025, silver prices have risen by 87%. Supply shortages and expectations of interest rate cuts have driven prices up. Deutsche Bank predicts that the average silver price in 2026 will be $55 per ounce. Goldman Sachs believes that silver and other precious metals still have an upward trend
Investment Insights - Under tight supply and demand conditions and the Federal Reserve's interest rate cuts, silver prices are expected to continue rising.
On November 28, silver futures prices on the New York Mercantile Exchange (COMEX) rose to $54.65 per ounce, setting a new historical high. The spot price of silver climbed to $54.22 per ounce, also nearing historical highs.
Since the beginning of 2025, silver prices have increased by 87%, surpassing gold's 57% rise.
[Source: TradingView; Comparison of silver and gold price trends in 2025]
What are the reasons for the rise in silver prices?
Analysis indicates that the current rise in silver prices is primarily due to two reasons: supply shortages and increasing expectations of interest rate cuts by the Federal Reserve.
Silver has been in a state of supply shortage for several consecutive years. Amid concerns that the U.S. may impose tariffs on silver, there has been a surge in the market to transport silver to New York, leading to a sharp decline in inventories at other global exchanges.
The decline in inventories has triggered term arbitrage behavior, which may further drive short squeezes. Currently, the COMEX silver 2512 contract has officially entered the delivery notification period, and silver volatility may further amplify.
Additionally, recently, with Federal Reserve officials adopting a dovish stance, expectations for interest rate cuts have continued to rise, with the market currently anticipating an 85% chance of a 25 basis point rate cut by the Federal Reserve in December.
Precious metals are collectively rising, with gold prices approaching the $4,200 mark, and metals such as silver and platinum following suit.
Will silver prices continue to rise in 2026?
"Given the current situation, the structural gap is likely to continue into 2026," said Michael DiRienzo, Executive Director of the Silver Institute.
Deutsche Bank predicts that silver will continue to experience deficits next year, with an average silver price of $55 per ounce in 2026, and expects silver ETF holdings to exceed the highs of 2021.
Goldman Sachs pointed out that during the Federal Reserve's easing cycle and under the theme of diversified allocation, private investors continue to view silver, platinum, and palladium as alternative assets to gold. The trend for metals like silver remains upward
