Silver prices have resumed their upward trend amid a broader precious-metals rally, while the market heads toward a sixth consecutive annual structural deficit. Growing demand from AI, data centers and electrification is emerging alongside photovoltaics as an increasingly important driver of silver consumption.
After falling to $55.5 per ounce (oz) in mid-July, their lowest level since early December, silver prices began trending upward in early August, reaching $68.3/oz on Aug. 25.
Silver’s recent gains have coincided with a broader rally in precious metals. Gold rose from around $4,000/oz in late July to more than $4,600/oz in late August, supported by geopolitical and fiscal uncertainty, lower bond yields and increased safe-haven demand.
“We remain positive towards gold and silver prices, for both late 2026 and into 2027,” Philip Newman, Managing Director of independent research consultancy Metals Focus, told pv magazine. “This partly reflects our expectation that the US Fed will not raise interest rates this year, which in turn will attract increased institutional investor interest. As such, gold could reclaim the $5,000 level and silver $80 before year-end.”
According to Michael DiRienzo, president and CEO of the Silver Institute, the silver market remains “fluid” as the industry heads toward its sixth consecutive annual structural deficit. He expects the shortfall to reach nearly 50 million oz this year.
