Silver Prices Slump as JPMorgan Cuts Forecast Amid Weaker Demand

JPMorgan has cut its forecast for silver prices by 30%, predicting a decline to $63 per ounce in Q4. The bank cited weaker physical demand, particularly from solar manufacturers who are reducing their use of silver and switching to alternative materials.

The Silver Institute still forecasts a significant deficit in 2026, with total supply reaching about 1.05 billion ounces and a shortage of 46.3 million ounces. This deficit is expected to persist despite JPMorgan's downward revision.

The bank's forecast suggests that the current silver price may be too high, but investors should exercise caution as higher US Treasury yields could create headwinds for precious metals in the short term.