Banks Cut Silver Price Targets Amid Soft Market

Analysts at major banks have cut their silver price targets in recent weeks, but this move is not as significant as it seems. In July, JPMorgan reduced its forecast to $60-$65, followed by other institutions such as UBS, ING, and Commerzbank.

The cuts are viewed as a reaction to the softening of investor appetite for silver after its sharp correction from the January record, as well as declining industrial demand due to high prices. However, this does not mean that the banks believe the market has flipped into surplus.

Even with the reduced deficit estimate by 80% to 60-70 million ounces, the official 2026 shortfall of 46.3 million ounces remains intact. The most bearish and bullish calls on silver prices vary by more than $50 an ounce, with Citigroup still holding a target near $110.

The current price of silver sits below every published analyst consensus, including the most bearish one. This gap between sentiment and metal is crucial, as it highlights that the physical shortage driving the market has not changed, despite the shift in mood among analysts.