Silver Market Sees Mixed Signals Amid Downward Revisions

The silver market is sending mixed signals as physical demand outstrips mine output for a sixth consecutive year. However, several major Wall Street banks have trimmed their medium-term price forecasts in July.

JPMorgan has lowered its target to $60-$65 per ounce, down from its previous call of around $81. UBS has also reduced its estimate for the global supply deficit by 80%, now seeing a gap of 60-70 million ounces. Other banks, such as Citi and Bank of America, are still optimistic about silver's long-term prospects, with targets of $110 and $85.93 respectively.

The gold-silver ratio is near 69, suggesting silver has room to run relative to gold. Despite the downward revisions, none of the banks have predicted an end to the supply shortage. The global deficit for 2026 stands at 46.3 million ounces, with mine production unable to keep pace with demand.

The price strength has been a boon for producers, such as First Majestic Silver. Its second-quarter revenue climbed 57% year-over-year to $415.5 million, with net income reaching $109.4 million and earnings per share of $0.22.