Citigroup raised its near-term silver price target to $150 per ounce from $100, betting that strong Chinese buying and tightening physical supply will extend a rally that pushed the metal to a record $117.71 on Monday.
“Silver is behaving like ‘gold squared’ or ‘gold on steroids’,” analysts, including Max Layton, wrote in a note Tuesday. “And we think this likely continues until silver looks expensive by historical standards, relative to gold.”
The forecast comes as silver surged nearly 40% in January alone, vastly outpacing gold’s gains. Monday’s 14% intraday jump marked the largest single-day gain since the 2008 financial crisis.
Citi expects silver to hit $150 within three months, driven by persistent buying momentum in China and the need for higher prices to encourage existing holders to sell. If the gold-to-silver ratio returns to its 2011 low of 32-to-1, silver could reach $170.
Silver futures pulled back Tuesday on profit-taking after Monday’s surge, but the rally has pushed the metal from around $30 at the start of 2025 to current levels above $100.
The price gains come despite outflows from silver-backed exchange-traded funds, selling by speculators in futures markets, and declining US warehouse inventories. COMEX registered inventories have fallen more than 70% since 2020, creating acute shortages of physical silver available for immediate industrial delivery.
Industrial demand accounts for approximately 58% of global silver consumption, with photovoltaic solar panels, electric vehicles, and data centers driving structural growth. Supply constraints have intensified as Mexico’s regulatory changes cut output by roughly 5% and several major mines approach end-of-life.
Bank of America forecast earlier this month that silver could top out between $135 and $309 in 2026, while Goldman Sachs expects the metal to average $85 to $100 per ounce, calling it the primary strategic metal of the green energy transition.
Silver’s outperformance of gold in 2025 marked the widest gap between the two metals in more than a decade.
Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
