After a surge of 115%, how much higher can silver go? Analyst: Aiming for triple digits next year

Silver has experienced a remarkable surge this year, capturing market attention with its price doubling and repeatedly hitting historical highs, outperforming gold. Analysts predict that the bull market for this "devil metal" has only just begun.

Spot silver has risen 114.6% year-to-date, reaching a historical high of $62.88 per ounce on Wednesday, and as of the time of writing, it stands at $62.37. Silver futures have also soared by 113%, breaking the $61 mark for the first time this week. Just a day earlier, silver had historically broken through the $60 barrier.

(Weekly chart of spot silver)

Analysis indicates that supply tightness, safe-haven demand, and industrial applications have driven this surge. Some market participants believe that the logic behind silver's rise remains intact. Paul Williams, Managing Director of Solomon Global, stated that silver's dual attributes as an industrial resource and a value storage tool continue to attract capital inflows, with long-term supporting factors strengthening. The Silver Institute released a report on Wednesday stating that demand for silver in key technology sectors such as solar energy, electric vehicles, and artificial intelligence infrastructure will continue to grow until 2030.

Multiple analysts predict that silver prices are likely to break the $100 mark next year, although significant volatility may occur during the process. Paul Williams from Solomon Global had predicted back in October, when silver was nearing $50, that it would surpass $100 by the end of 2026. Philippe Gijsels, Chief Strategist at BNP Paribas, also expects silver to enter the three-digit range by 2026.

It is worth noting that silver remains relatively cheap compared to gold, with the gold-silver ratio dropping to its lowest level since 2021. Although gold has also risen about 60% this year, silver's performance has been stronger, with the current gold-silver ratio around 68, below the average level of 66 since 1971.

Industrial Demand Becomes a Key Driver

One of the core logics behind the surge in silver prices is the expanding application of silver in key industrial sectors. This metal is a critical component in electrical switches, solar panels, and mobile phone production, and is also used to support the hardware and infrastructure of the booming artificial intelligence sector.

The report released by the Silver Institute on Wednesday pointed out that silver's excellent conductivity and thermal conductivity are becoming increasingly important for driving the technological transformation of the global economy.

According to an article from Wall Street Insight, the agency expects that global industrial demand for silver will further increase over the next five years, driven by key technology sectors such as solar energy, electric vehicles and their infrastructure, data centers, and artificial intelligence, continuing to rise until 2030.

Williams from Solomon Global stated that silver's dual identity—as both an important industrial resource and a value storage tool—continues to attract both retail and institutional buyers

For those who believe that gold prices are increasingly out of reach but wish to participate in the precious metals boom cycle, silver is becoming and will continue to be a compelling alternative.

A three-digit target is not a fantasy

Some market participants are optimistic about silver's prospects, believing that breaking through $100 is not impossible.

Williams predicted last October, when silver was close to $50, that the metal would rise above $100 by the end of 2026. He noted that silver prices are currently above $60, having risen about 25% in a month, and this trajectory remains solid.

Williams stated:

"The supply-demand imbalance in silver continues to push prices higher, and the long-term fundamentals supporting this so-called 'devil metal' will only strengthen. Any pullback may be a temporary pause rather than a change in direction, considering the structural tension in the market. The outlook for silver in 2026 is bright."

Gijsels from BNP Paribas is also bullish on silver. He stated that when undervaluation, long-term deficits, and a new industrial revolution converge, market magic happens, which is the story of silver in 2025.

He expects silver to enter a long-term bull market, potentially reaching three digits by 2026, although profit-taking may trigger some "sharp corrections."

Gijsels mentioned that he co-authored a book with economist Koen De Leus in 2023 titled "The New World Economy Under Five Major Trends," where they predicted that this long-deficit commodity "Sleeping Beauty" would eventually awaken and break through the $50 level that has been maintained for decades.

"Clearly, we are now in a long-term bull market; this is not the end but the beginning of a very good story."

Silver still has room to rise relative to gold

The gold-silver ratio—the indicator of how many ounces of silver can buy one ounce of gold—has significantly decreased from its peak in April.

AJ Bell's investment director, Russ Mould, stated that even as the premium of gold over silver continues to narrow, the latter remains relatively cheap compared to gold. The gold-silver ratio is currently around 68, at its lowest level since 2021.

Mould pointed out that the average gold-silver ratio since 1971 is about 66, while previous silver bull markets have seen the ratio drop below 40