Silver is surging, and $90 may just be the beginning.
2026-05-14 01:13:58
Currently, the silver market is brewing another "perfect storm": the continued strong industrial demand contrasts sharply with the relative shortage of supply. This supply-demand imbalance may drive silver prices to rise steadily and return to key resistance levels.
It is worth noting that gold, also a precious metal, has recently been caught in a sideways trading pattern and lacks momentum due to heightened inflation concerns and rising expectations of interest rate hikes. Silver, on the other hand, has gradually broken free from its dependence on gold's price movements thanks to its prominent industrial attributes. Its traditional role as a monetary asset is being overshadowed by the strong momentum brought about by industrial demand.
The latest market quotes show a correlation between silver's rise and copper's record high: spot silver successfully broke through the $88 per ounce mark, with the latest quote reaching $88.30 per ounce, a daily increase of 2%; at the same time, the price of high-grade copper futures for July also hit a record high, with the latest trading price at $6.70 per pound, also with a daily increase of more than 2%. The simultaneous strengthening of these two major industrial metals further confirms the robust industrial demand.
Silver prices are expected to hit $90, with strong long-term upward momentum.
Regarding the current trend of silver, analysts from multiple institutions have given positive predictions, believing that its upside potential has not yet been fully realized.
In a report released Tuesday, OANDA market analyst Elio Manier clearly stated that silver prices still have room to rise further in the current market environment and are expected to test the key resistance level of $90 per ounce. "Normally, silver's price movements closely follow gold, but this strong rebound in silver has shown independence, indicating a real and robust demand for alternative metals in the market, with funds continuously flowing into these assets rather than simply following gold's movements," he added.
David Morrison, senior market analyst at Trade Nation, stated that although rising interest rate expectations have pushed up the dollar exchange rate, putting some downward pressure on silver prices, the current strong market rally is undeniable. He further predicted that if silver prices can successfully break through the resistance level of $90 per ounce, traders and investors may set their sights on the record high of $120 per ounce reached in January of this year. "The daily MACD indicator (Moving Average Convergence Divergence) has turned sharply upward, a clear signal that silver's upward momentum is significantly strengthening."
Supply and demand imbalances, coupled with green demand, are multiple factors supporting silver prices.
Analysts generally believe that the recent surge in silver prices is not accidental, but rather the result of multiple factors, including limited supply, strong industrial demand, and geopolitical influences.
From the supply side, silver production is highly dependent on base metal mining—as a by-product, silver is often produced incidentally during the mining of base metals such as zinc, copper, and aluminum. Currently, the ongoing conflict in the Middle East has disrupted the global sulfur supply chain. Sulfuric acid, a core raw material for base metal production, is experiencing a shortage, directly leading to a decline in the production of zinc, copper, and aluminum, which in turn reduces the by-product output of silver. Analysts predict that this year will mark the sixth consecutive year of supply deficit in the silver market, and the continued exacerbation of the supply-demand imbalance will further support higher silver prices.
From the demand side, two major forces are the core support for silver demand. On the one hand, the continued progress of China's economic recovery has provided stable demand support for silver and other base metals. A commodities analyst at TD Securities noted, "Although buying by commodity trading advisors (CTAs) has slowed recently, demand in the Chinese market is picking up again. Over the past month, leading traders on the Shanghai Futures Exchange (SHFE) have been steadily increasing their silver holdings; at the same time, the domestic silver premium in China remains high, and import arbitrage opportunities have opened multiple times in the past two weeks. All these signals indicate that demand from the Eastern market may become the core catalyst driving silver prices upward."
On the other hand, the rapid development of the green energy industry has further amplified the demand potential for silver. Julia Handoshko, CEO of European brokerage Mind Money, stated that the ongoing energy crisis triggered by the Iranian conflict is driving a global shift towards alternative energy sources, and silver, as a key metal in the renewable energy industry (such as photovoltaics) and the new energy vehicle industry, will see its demand continue to rise. "Currently, what is driving silver's price movement is no longer just investor sentiment. Limited supply, logistical disruptions, and the explosive growth in demand for green energy are jointly reshaping the silver market landscape and placing silver on a long-term growth trajectory."
Future variables: Geopolitical talks may influence short-term trends
While the long-term upward trend for silver is clear, its short-term trajectory remains somewhat uncertain. David Morrison specifically points out that silver's future performance largely depends on the meeting between the leaders of China and the United States, and whether these talks can lead to a resolution to issues such as the US-Iran conflict.
It is worth noting that gold, also a precious metal, has recently been caught in a sideways trading pattern and lacks momentum due to heightened inflation concerns and rising expectations of interest rate hikes. Silver, on the other hand, has gradually broken free from its dependence on gold's price movements thanks to its prominent industrial attributes. Its traditional role as a monetary asset is being overshadowed by the strong momentum brought about by industrial demand.
The latest market quotes show a correlation between silver's rise and copper's record high: spot silver successfully broke through the $88 per ounce mark, with the latest quote reaching $88.30 per ounce, a daily increase of 2%; at the same time, the price of high-grade copper futures for July also hit a record high, with the latest trading price at $6.70 per pound, also with a daily increase of more than 2%. The simultaneous strengthening of these two major industrial metals further confirms the robust industrial demand.
Silver prices are expected to hit $90, with strong long-term upward momentum.
Regarding the current trend of silver, analysts from multiple institutions have given positive predictions, believing that its upside potential has not yet been fully realized.
In a report released Tuesday, OANDA market analyst Elio Manier clearly stated that silver prices still have room to rise further in the current market environment and are expected to test the key resistance level of $90 per ounce. "Normally, silver's price movements closely follow gold, but this strong rebound in silver has shown independence, indicating a real and robust demand for alternative metals in the market, with funds continuously flowing into these assets rather than simply following gold's movements," he added.
David Morrison, senior market analyst at Trade Nation, stated that although rising interest rate expectations have pushed up the dollar exchange rate, putting some downward pressure on silver prices, the current strong market rally is undeniable. He further predicted that if silver prices can successfully break through the resistance level of $90 per ounce, traders and investors may set their sights on the record high of $120 per ounce reached in January of this year. "The daily MACD indicator (Moving Average Convergence Divergence) has turned sharply upward, a clear signal that silver's upward momentum is significantly strengthening."
Supply and demand imbalances, coupled with green demand, are multiple factors supporting silver prices.
Analysts generally believe that the recent surge in silver prices is not accidental, but rather the result of multiple factors, including limited supply, strong industrial demand, and geopolitical influences.
From the supply side, silver production is highly dependent on base metal mining—as a by-product, silver is often produced incidentally during the mining of base metals such as zinc, copper, and aluminum. Currently, the ongoing conflict in the Middle East has disrupted the global sulfur supply chain. Sulfuric acid, a core raw material for base metal production, is experiencing a shortage, directly leading to a decline in the production of zinc, copper, and aluminum, which in turn reduces the by-product output of silver. Analysts predict that this year will mark the sixth consecutive year of supply deficit in the silver market, and the continued exacerbation of the supply-demand imbalance will further support higher silver prices.
From the demand side, two major forces are the core support for silver demand. On the one hand, the continued progress of China's economic recovery has provided stable demand support for silver and other base metals. A commodities analyst at TD Securities noted, "Although buying by commodity trading advisors (CTAs) has slowed recently, demand in the Chinese market is picking up again. Over the past month, leading traders on the Shanghai Futures Exchange (SHFE) have been steadily increasing their silver holdings; at the same time, the domestic silver premium in China remains high, and import arbitrage opportunities have opened multiple times in the past two weeks. All these signals indicate that demand from the Eastern market may become the core catalyst driving silver prices upward."
On the other hand, the rapid development of the green energy industry has further amplified the demand potential for silver. Julia Handoshko, CEO of European brokerage Mind Money, stated that the ongoing energy crisis triggered by the Iranian conflict is driving a global shift towards alternative energy sources, and silver, as a key metal in the renewable energy industry (such as photovoltaics) and the new energy vehicle industry, will see its demand continue to rise. "Currently, what is driving silver's price movement is no longer just investor sentiment. Limited supply, logistical disruptions, and the explosive growth in demand for green energy are jointly reshaping the silver market landscape and placing silver on a long-term growth trajectory."
Future variables: Geopolitical talks may influence short-term trends
While the long-term upward trend for silver is clear, its short-term trajectory remains somewhat uncertain. David Morrison specifically points out that silver's future performance largely depends on the meeting between the leaders of China and the United States, and whether these talks can lead to a resolution to issues such as the US-Iran conflict.
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- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
