Silver correction paves way for sustainable rally, says WisdomTree's Shah
This story was originally published at 18:14 IST on 23 July 2026
Register to read our real-time news.Informist, Thursday, Jul. 23, 2026
MUMBAI – The recent correction in silver prices has removed speculative excesses that drove the metal to a record high above $120 an ounce in January, paving the way for a more sustainable rally towards $70 an ounce by the second quarter of 2027, according to Nitesh Shah, head of commodities and macroeconomic research.
"Silver's exuberance in January 2026 is now clearly in the rear-view mirror," Shah said. "We therefore see silver rising towards $70 per ounce, but view this as a fundamentally supported move rather than a repeat of January's speculative spike," he told kitco.com.
The correction has also reduced the risk of falling demand as prices above $120 an ounce could have forced industrial consumers to reduce silver usage or accelerate the adoption of alternatives, Shah said.
Manufacturers continue to grapple with significantly higher silver prices despite the recent pullback, with sectors such as solar panels particularly exposed because the metal accounts for a large share of their production costs. Softer Chinese solar demand, easing inventory tightness and a gradual increase in mine supply should also help cool the market after January's speculative surge.
Higher gold prices are expected to remain the primary catalyst for silver. WisdomTree has forecast gold to climb above $4,560 an ounce within the next 12 months. Silver, which typically exhibits greater volatility than gold because of its smaller market size and higher retail participation, is likely to benefit from the same macroeconomic tailwinds, Shah said. End
US$1 = INR 96.57
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Somen Bose
Edited by Akul Nishant Akhoury
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2026. All rights reserved.
To read more please subscribe
Share this Story:
