Citigroup: Silver is Heading to $43 an Ounce

The rally in silver is just getting started, according to Citigroup analysts who predict the precious metal will hit $43 an ounce during the first half of 2026. Silver has been the best performing investment of 2025, up 33 percent in London trading through mid-July, even topping gold’s sparkling  28 percent gain.

Growing investment buying along with a tightening supply of the metal amid strong industrial demand are fueling the rise. “The recent silver price rally is not just a catchup trade to gold but also a reflection of stronger silver fundamentals,” Citigroup is telling clients. Silver mine production increased by just one percent in 2024. Factoring in recycling, the supply of silver rose two percent during the year. Industrial demand, meanwhile, increased by double that percentage, according to the Silver Institute. Citigroup sees the trend of demand exceeding supply continuing: “We expect silver availability to tighten on consecutive years of deficit, sticky stockholders requiring higher prices to sell, and robust investment demand,” the firm argues in its report.  

Anticipated interest rate cuts from the Federal Reserve would spark further gains, according to Citigroup’s forecast, which sees silver reaching $40 an ounce by October and $43, perhaps as soon as January of 2026.