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Informist, Thursday, Feb. 12, 2026

 

MUMBAI – Silver prices are expected to average $81 per ounce in 2026, after a nearly 130% increase in value in 2025 – starting the year at $29 per ounce and rising to over $70 per ounce by year-end, J.P. Morgan Global Research said in a report. 

 

On Jan. 30, US President Donal Trump nominated Kevin Warsh as the next Federal Reserve chair, with silver crashing 27%, alongside a 10% drop in gold prices. Warsh's appointment and a rebound in dollar confidence appear to have partially slowed outsized demand for precious metals, according to the report

 

But structural drivers may continue to constrain silver's supply, which will support prices in 2026. Silver is by and large mined as a byproduct of other metals, meaning production is somewhat less elastic to higher silver prices. Moreover, silver's role in industrial processes, such as the manufacture of solar panels in the recent times will cap any downward trajectory in prices, according to the report.

 

Meanwhile, in the long term, widespread adoption of silver-free technology in the solar manufacturing sector, could lead to demand for silver falling for such industrial usage purpose, according to the report. "Long term, the largest risk we see for silver comes from more widespread adoption of silver-free technology, such as the cadmium telluride thin-film technology," Gregory Shearer, head of base and precious metals strategy at J.P. Morgan, said, referring to an innovation that could replace the need for silver in solar arrays. 

 

Silver's sky-high prices may start to erode demand from solar manufacturers as they turn to silver-free methods to circumvent costs, as well as "thrift," or reduce the usage of silver contained in each solar panel, he said. "While a precious metal at its core, silver is still a very industrial metal, with industrial applications accounting for about 60% of total demand (excluding ETF flows). From a fundamental perspective, we believe the surge higher in silver has likely already set in motion a meaningful acceleration in substitution and thrifting trends, which will leave scar tissue on silver balances over the coming quarters." Shearer said.

 

However, Shearer said these changes might take years to play out and that in the near term, fluctuations in investment demand and appetite for silver remain paramount for prices. 

 

UPSIDE UNCERTAIN

Silver does not has a wide buyer base like that of gold, which is why a fair silver price may be harder to ascertain, the report said. Gold enjoys more dependable demand than silver as it has a wider buyer base, which also includes global central banks. These central banks purchase gold as diversification from dollar reserve holdings, as well as for its virtues as an inflation hedge and liquid asset with no counterparty risk. But on the other hand, silver does not enjoy that same baseline demand.

 

"Without central banks as structural dip buyers as in gold, we do think there remains the risk for a further move back higher in the gold to silver ratio," Shearer predicted.

 

However, global demand for silver, including in large markets such as China and India, will play a crucial role in determining where silver prices find support ater recent pullbacks, according to the report. "With amplified Chinese investment demand significantly influencing price formation across the metals complex, we believe this remains another catalyst to watch in silver over the coming weeks," Shearer said. "Ultimately, we are more cautious on re-engaging in silver in the near term until it becomes clearer that some of the recent froth in prices has been fully shaken out," he added.  End

 

US$1 = INR 90.60

 

Reported by Taniva Singha Roy

Edited by Avishek Dutta

 

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