Silver Price Trapped in Range, But Physical Demand Rises

The silver price has been stuck in a narrow range between $50-$60 per ounce for months, frustrating both bulls and bears. Despite being cut nearly in half from its January peak above $120, some see this as an opportunity for physical buyers.

Harry, owner of a coin shop featured on the Silver Dragons YouTube channel (440,000+ subscribers), notes that the market saw a modest 81-cent bounce following the Federal Reserve's decision not to hike interest rates in July. This is a positive sign, but Harry remains skeptical about JPMorgan's prediction that silver will average $81 per ounce in 2026.

Physical demand for silver has been increasing, with dealers struggling to keep inventory levels up. Central banks are also accumulating gold and silver, which could put upward pressure on prices. However, a rate hike or a drop in physical demand could still drag silver lower.