Spot silver traded near $64.25 per ounce on August 14, according to , leaving the metal around 10% behind where it closed out in 2025. Also, it's trading at nearly half its January peak, especially after silver skyrocketed 161% last year. The pressure has come from multiple sides.
The Iran conflict and the resulting uncertainty around the Strait of Hormuz backed safe-haven demand but also raised inflation and growth concerns, negatively impacting industrial consumption. On top of that, shifting expectations for Federal Reserve policy kept precious metals swinging sharply. On the flip side, Gold has held up better, trading near $4,331 per ounce, according to Investing, and roughly flat for the year, buoyed by central bank buying and renewed demand for safety.
Nevertheless, for battered silver investors, there may be reason to look beyond the choppiness. In its latest note shared with me, Citi laid out its riveting bull case for what could come next. Citi analysts still see substantial upside ahead for silver, even after a topsy-turvy run for the metal in 2026.
Robert Kiyosaki has a bold call on gold and silver Peter Schiff sees something big in gold and silver BofA sees lost year taking shape for gold It's doubling down on its price target of $90 an ounce over the next six to 12 months, implying 40% upside from current prices near $64. Also, Citi maintained its short-term $75 target for the next three months. According to the bank, silver's relatively soft industrial demand will be offset by stronger investment demand.
"We expect silver to continue to track gold in direction with high beta, making it an ideal upside play... for a quick Strait of Hormuz resolution," Citi said. As we look ahead, Citi points to an eventual de-escalation of the Strait of Hormuz crisis, somewhere between September and December, alongside a less hawkish Federal Reserve. Consequently, that could weaken two major headwinds silver is facing: higher yields and a stronger U.S. dollar.
As mentioned above, industrial demand is more uncertain. Solar companies are looking for ways to use less silver, and newer solar-panel technology might require less of the metal, substituting copper, according to SolarPowerWorld. However, Citi still expects strong demand from AI, 5G, and electric vehicles, keeping the global silver market in deficit through 2027.
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