Silver Targets $72: Supply Deficit and Fed Expectations Shape Prices

As the spot price of silver attempts to stabilize around $58 per ounce, the average price forecast for 2026 has been revised upward to $72. This new target is shaped by a combination of factors including a market supply deficit, physical investment demand, demand from the solar energy sector, and expectations regarding the U.S. Federal Reserve's (Fed) monetary policy. Silver prices have fallen to about half of their previous record highs. However, analysts predict that current supply constraints and increasing industrial usage, particularly rising demand for silver in solar panels, could drive prices higher. Physical silver investment demand also plays a significant role in this equation. Expectations of Fed interest rate cuts are creating a favorable environment for precious metals like silver. Lower interest rates could boost interest in alternative investment assets, supporting silver prices. Consequently, investors are closely monitoring the Fed's upcoming moves. Market experts note that while this new price target for silver is subject to short-term volatility, it will be driven by supply-demand dynamics and macroeconomic factors in the medium to long term. In particular, the green energy transition and technological advancements could increase industrial demand for silver, further supporting prices. This is not investment advice.