Silver prices are expected to climb above $40 per ounce in the coming months, driven by tightening physical supply and rising investment interest, according to analysts at Citigroup.
In a recent report led by Max Layton, Citi revised its three-month silver forecast from $38 to $40, citing consecutive years of supply deficits and strong investor appetite. Silver is currently priced at $38, up over 3% in the past month, and has gained 30% year-to-date, reaching a 13-year high.
Looking further ahead, Citi projects silver to rise by 13% to $43 per ounce over the next six to twelve months. “We foresee supply constraints due to sticky stockholders demanding higher prices and strong investment momentum,” the analysts wrote.
The $30 billion global silver market, with relatively low turnover, is highly sensitive to shifts in demand. In 2025, silver consumption is expected to exceed supply for the fifth straight year, with demand at 1.20 billion ounces versus a supply of 1.05 billion ounces.
The gold-to-silver ratio, which peaked near 100 in January, has narrowed to 85, signaling potential for silver to outperform. The long-term average stands at 70, indicating further upside potential.
Beyond being a precious metal, silver is a key industrial commodity, with over 50% of global demand coming from sectors like solar energy, electronics, and electrification.
In contrast, Citi remains cautious on gold, expecting it to fall below $3,000 in 2026 after consolidation in the short term.