August 13, 2026
For Citi, silver remains the classic hedge against gold. In a recent client note, the analysts confirm their optimistic price targets of US$75 per ounce over the next zero to three months and US$90 over the next six to twelve months – based on the current price of around US$65.
Investment flows are overtaking industrial demand as a price driver
Citi expects investor demand to continue to recover and to have a greater impact on price trends in future than industrial demand. Two macro factors are particularly crucial in this regard: a possible easing of tensions in the Strait of Hormuz and a less restrictive stance by the US Federal Reserve. Whilst higher real yields and a strong US dollar have recently weighed on silver, the bank estimates that these factors are likely to ease between September and December. In this environment, silver – with its typically higher beta – should follow the trend set by gold and react particularly sensitively to any geopolitical de-escalation.
At the same time, the focus is shifting in the short term from industry towards capital flows. In the solar sector, a structural slowdown is emerging due to material savings and the rise of the more efficient back-contact cell technology (BC). BC technology could become the standard by 2028.
Indian tailwind meets structural market deficit
The silver market continues to receive strong support from India, where a local premium of around 7 per cent highlights the high level of demand. Citi expects an additional surge in demand here ahead of the upcoming festival and wedding season in the fourth quarter.
Despite the headwinds from the solar sector, the bank expects the global silver market to remain in deficit until at least 2027. Key growth drivers such as artificial intelligence, 5G and electric mobility are largely offsetting the weaker demand from the solar sector. For investors, this results in an attractive mix of macroeconomic recovery, rising investor demand and a persistent structural shortfall.
Source：https://goldinvest.de/en/is-a-silver-rally-on-the-cards-citi-confirms-target-of-ususd90
