Stories
Silver Market Set for a Major Flip by 2027 with Expected Surplus
- •The supply and demand equation in the silver market is shifting rapidly, with the long-standing supply deficit expected to turn into a surplus by 2027.
- •Demand for silver in the solar sector has dropped by about 30 percent in China, alongside a broader decline in industrial usage.
- •Silver production from mines is increasing, and the London Metal Exchange holds a record stockpile of 914 million ounces.
- •Major brokerages predict that silver prices in 2027 will remain within a specific range rather than hitting previous record highs.
Key Questions Answered
The silver market is expected to shift into a surplus by 2027 primarily due to a decline in industrial and solar demand, notably a 30 percent drop in China's solar sector demand, combined with rising production from mines.
International silver rose from $30 per ounce in January 2025 to a record $121 in January 2026 before falling to $57 in June, currently trading near $60 to $61. In India, prices surged from Rs 1 lakh per kilogram in January 2025 to Rs 4.20 lakh in January 2026, dropping to Rs 1.94 lakh in June, and hovering around Rs 2.25 lakh.
Major brokerages expect silver prices in 2027 to stay within a range rather than hitting record highs again. UBS estimates $80 per ounce, Commerzbank expects $95, JPMorgan anticipates current levels to persist, and Citi, Deutsche Bank, and HSBC forecast a range of $65 to $75.
