Silver Price Targets Fall, But Shortage Remains

Wall Street banks have been lowering their silver price targets in recent weeks, but this does not necessarily mean they expect the metal's shortage to end. The current deficit estimate still stands above official numbers, and even the most bearish forecasts predict a shortfall.

In July, JPMorgan cut its forecast for silver to $60-$65, citing weaker demand from both investors and industry. UBS trimmed its deficit estimate by 80% but still predicts a shortage of 60-70 million ounces in 2026. The official number is 46.3 million ounces.

Commerzbank's view on silver remains unchanged at $67, while Citigroup carries a second-half target near $110 and Bank of America sits at an average of $85.93 for 2026. Goldman Sachs predicts $85-$100 if industrial demand holds.

The banks' price-target cuts do not signal the end of the shortage, as they are merely adjusting their expectations to reflect the current market mood. The physical balance of silver remains unchanged, with mine supply forecast flat and demand exceeding it by a significant margin.