After reaching a new high of $64, silver still has significant upside potential, with analysts projecting a target of $75 by 2026.
Silver prices have broken through the historical peak of $64 per ounce, and this 'poor man's gold' has completely taken center stage for investors. Institutional analysts assert that its upward potential remains enormous.
MarketGauge Chief Strategist Michelle Schneider revealed in an interview with Kitco News that after liquidating her gold and silver positions in October, she took the opportunity to re-enter as the gold-silver ratio failed to hold above 80, with an entry price for silver at about $48 per ounce; as silver prices have surged in recent months, she has also raised her stop-loss levels.
Schneider is firmly bullish on the future of silver, with the core logic pointing to the strong drive of supply and demand fundamentals. "Current silver prices have not yet reached reasonable high levels," she emphasized, "the supply gap has become a major concern for the market — demand is continuously increasing, but the supply side is struggling."
In her view, silver is no longer just a precious metal but a core industrial metal in the global electrification wave. Tech giants are pouring $700 billion into building artificial intelligence infrastructure, and the premise of all this is a sufficient supply of silver.
Even though the silver price has stabilized around $64, Schneider still defines it as a value undervaluation in the precious metals market. She pointed out that the historical gold-silver ratio averages between 50-60, and it once fell to around 20 in the 1970s; in the current market environment, this ratio is expected to drop to 40, which means silver prices will experience a surge.
"In comparison to other assets, silver's valuation remains quite cheap." Schneider stated that the downward space of the gold-silver ratio is the upward space for silver. She provided a clear target: by 2026, silver prices will hit $75 per ounce, and any pullback or consolidation is an excellent buying opportunity.
The core engine driving this round of silver price surge is the continuous demand from retail investors.
This week, the Federal Reserve cut interest rates by 25 basis points as expected, bringing the federal funds rate down to the range of 3.50%-3.75%. Although the Federal Reserve did not signal aggressive easing for 2026, Schneider predicts that as leadership changes, the Fed's monetary policy will further shift towards easing.
"Next year's specific actions by the Federal Reserve are still hard to determine, but it is certain that quantitative tightening has ended." She added that currently, not only is there a support from a $2 trillion deficit spending, but more discussions on stimulus policies are also brewing; meanwhile, grocery prices have surged by 30%, and the market will eventually factor in the risks of rampant inflation into asset pricing — this is solid support for hard assets like silver and gold.
Schneider further analyzed that if inflationary pressures continue to rise, real yields will plummet, and the dollar index will also come under pressure. In fact, the attempt of the dollar index to reach the 100 level has already failed.
"Based on this logic, I am now super bullish on gold and silver, especially favoring silver — after all, its valuation is still severely undervalued.