Why Silver Prices Are Rising — And What Comes Next

Silver just crossed $90 per ounce — and momentum is building fast. The metal has doubled in the past four months and is already up 28% year-to-date. If you think that’s impressive, industry analysts believe this is just the beginning. 

After silver claimed the title of best-performing asset in 2025 with a stunning 146% gain, precious metals strategist Alan Hibbard has released his silver price prediction 2026 — and it’s more bullish than ever. In his latest analysis, Hibbard lays out five compelling reasons why silver could deliver even bigger returns this year than it did last year. 

Here’s what’s driving the rally. 

1. The Structural Deficit Is Getting Worse 

Silver has been running a structural deficit for five consecutive years. Industry, investment, and manufacturing demand is exceeding the amount miners can produce. 

That means existing above-ground stockpiles are being drained to meet demand. And as those reserves shrink, holders of physical silver are demanding higher and higher prices to part with it. This supply-demand imbalance is the primary force behind silver’s bullish momentum — and it’s not going away in 2026. 

Want to understand the supply-demand dynamics better? Check out our latest coverage on GoldSilver News for real-time market updates. 

2. Countries Are Scrambling to Secure Silver 

Sovereign demand for silver exploded in 2025, and governments around the world are treating it like a strategic asset: 

• The United States officially added silver to its list of critical minerals for the first time ever 

• Russia confirmed it’s allocating funds to purchase silver for its reserves 

• China tightened export controls on silver starting January 1st, citing its strategic importance for clean energy and defense 

The message is clear: nations want silver within their borders — and they’re willing to compete for it. 

3. The Futures Market Is Flashing a Rare Warning Signal 

Silver futures just entered deep backwardation — a phenomenon we haven’t seen at this level since 1980, the peak of the last major silver bull market. 

What does that mean? Investors are paying a premium to get physical silver now rather than waiting for future delivery. That’s highly unusual. Normally, futures prices are higher further out because of storage and financing costs. When the curve inverts, it signals one thing: urgent demand for the physical metal. 

As Hibbard notes, this creates a feedback loop. Once investors see the broader market scrambling for physical silver, they realize they’d better act fast too. It’s like a bank run — but for precious metals. 

One analyst quoted in Hibbard’s video suggests silver’s technical pattern points to a measured target of $400 per ounce based on a multi-decade cup-and-handle formation. It’s an ambitious silver price prediction for 2026, but the physical demand dynamic driving the market today makes it less far-fetched than it might sound. 

4. The Fed Just Made a Major Policy Shift 

On October 29th, 2025, the Federal Reserve announced it would stop shrinking its balance sheet — effectively ending three and a half years of quantitative tightening. 

For precious metals investors, this is a big deal. The Fed is returning to “policy normalization,” which historically means more currency creation and lower interest rates. Lower rates reduce the opportunity cost of holding non-yielding assets like silver, making them more attractive on the margin. 

Hibbard expects further rate cuts in 2026, with forecasts ranging from a quarter percent to as much as 1.5%. Loose monetary policy? Extremely bullish for scarce assets like silver. 

5. Volatility Is Off the Charts 

Silver isn’t just volatile over time — it’s volatile across markets. Recent reports show massive price dislocations between East and West: 

• Shanghai silver recently settled at $77 while COMEX traded at $71 — a $6 spread that’s never existed before 

• That gap later widened to $9 per ounce, signaling broken arbitrage mechanisms 

• One Canadian silver company received offers from Chinese and Indian buyers willing to pay $8 to $10 above market price just to secure physical metal 

This kind of volatility creates opportunities — but only for investors who understand what’s happening and don’t get shaken out. Hibbard’s advice? Stick to your strategy and hold through the turbulence. The rewards tend to come to those who stay the course. 

Watch the Full Analysis

Alan Hibbard’s complete silver price prediction 2026 dives much deeper into the technical patterns, market mechanics, and geopolitical dynamics shaping this bull market. If you’re serious about understanding where silver is headed — and why — watch the full video here. 

With silver already pushing past $90 and the fundamentals only getting stronger, 2026 could be a year precious metals investors talk about for decades. 

People Also Ask 

What is the silver price prediction for 2026? 

Precious metals strategist Alan Hibbard expects silver to continue its bull market in 2026, potentially outperforming its 146% gain from 2025. Technical patterns suggest silver could reach $400 per ounce long-term, though near-term targets depend on supply-demand dynamics and monetary policy. Watch Alan’s full analysis to understand what’s driving the rally.  

Why is silver rising so fast in 2026? 

Silver is rising due to a five-year structural deficit where demand exceeds supply, sovereign nations treating it as a strategic resource, and the Federal Reserve ending quantitative tightening. Additionally, silver futures entered deep backwardation — a phenomenon last seen at the peak of the 1980 bull market — signaling urgent demand for physical metal. 

Is it too late to invest in silver? 

Many analysts believe silver’s bull market is just beginning despite recent gains. The structural supply deficit, sovereign demand, and loose monetary policy suggest sustained upward pressure on prices. However, timing and strategy depend on your individual investment goals — consult with a GoldSilver precious metals specialist to discuss your options. 

What is backwardation in silver futures? 

Backwardation occurs when near-term silver futures trade at higher prices than longer-dated contracts, meaning investors pay a premium to own physical silver now rather than later. This is unusual and typically signals supply stress or urgent physical demand. Silver entered deep backwardation in late 2025 for the first time since 1980. 

Why are countries buying silver? 

Countries are securing silver because of its strategic importance for clean energy, defense, and technology manufacturing. The U.S. designated silver a critical mineral for the first time in 2025, Russia confirmed purchases for reserves, and China restricted silver exports starting January 1st. This sovereign demand is putting additional pressure on an already tight market.