Silver Zooms to $51.69 per Ounce: Bank of America Eyes $65 by 2026 Amid Supply Crunch

Silver Zooms to $51.69 per Ounce: Bank of America Eyes $65 by 2026 Amid Supply Crunch

October 14, 2025

Silver price today has flashed a dazzling $51.69 per ounce, leaving investors wide-eyed! Why the buzz? The silver market is tightening fast due to structural deficits and rock-bottom inventories. Demand is heating up from industries like electronics and solar power, pushing supply to its limits. On top of that, investors are grabbing silver as a safe haven amid geopolitical and economic storms, fuelling a fiery buying spree. Bank of America is sounding the alarm with an eye-popping forecast of $65 per ounce by 2026. Their analysts cite "strong structural deficits and low inventories," meaning there’s not enough silver to keep up with rising use — especially in electronics, solar panels, and other manufacturing sectors. These trends are creating a long-term bullish wave for silver. Experts say today’s market is "unlike anything seen in recent memory." Borrowing rates for silver have jumped more than 100%, signalling how rare physical silver has become. The London Bullion Market Association (LBMA), a key hub, is struggling to meet delivery demands — a situation dubbed a "state of seizure." This means traders are scrambling and ready to pay big premiums just to get hold of real silver. Why so much pressure? Industrial users are gobbling silver fast. Renewable energy, electric vehicles, and green tech like solar panels need huge quantities, increasing demand sharply. Investors want silver too, treating it as a shield against inflation and shaky currencies. Exchange-traded funds (ETFs) are snapping up physical silver to back their portfolios, tightening supply even more. This leads to "structural tightness," a fancy phrase meaning silver’s supply and demand outlook is seriously unbalanced. The $65 prediction isn’t about a short-term spurt but a deeper, longer-lasting bullish cycle. What’s pushing spot prices higher right now? As industrial uses skyrocket, less silver is left for trading. Inflation fears and currency uncertainty send more buyers running to silver’s safety. ETFs buying physical silver to back their shares add fuel to the fire, pushing spot prices above futures — a sign silver is in short supply and hot demand. Investor alert: You can check out silver-focused ETFs like iShares Silver Trust (SLV), abrdn Physical Silver Shares ETF (SIVR), and Global X Silver Miners ETF (SIL). These let you ride the silver wave without holding the metal physically. But beware! The London silver market is strained like never before. Demand for immediate delivery is so fierce that borrowing costs soar and traders become cautious. Some are even pausing big deals until things calm down. Silver’s run has been spectacular — up 21% in the past month and 65% this year, beating gold’s 54% rise. Its vital role in solar panels, electric vehicles, and electronics ensures it stays in demand. So, what should investors do? The silver market is strikingly bullish but volatile. Prices move faster than gold, so cautious investment is wise. Watch for global events and policy changes that could shake markets short-term. Silver is no longer just a quiet precious metal — it is a sparkling star on the global stage, promising great chances for savvy investors. Keep your eyes glued: silver’s shine is set to stay bright through 2026 and beyond!

Read More at Economictimes

Tags: Silver price, Bank of america forecast, Silver demand, Industrial usage, Silver shortage, Silver etfs,

Piyush Shukla

Comments

Leave a reply

Your email address will not be published. Required fields are marked *