Silver Slides Below $60: Why Analysts Still See A Shine Despite 50% Wipeout From Early 2026 Highs

Silver continues to stay under downward pressure, with global prices slipping below the $60-per-ounce mark as a strengthening US dollar and elevated Treasury yields are nudging investors away from precious metals.

Despite suffering a nearly 50% wipeout from the historic peaks scaled in early 2026, wealth managers and commodity analysts insist that silver's long-term industrial fundamentals remain intact.

Spot silver in the international market was trading at $59.35 per ounce, down $0.44 or 0.74% on Thursday, extending a persistent downtrend since January when prices had briefly spiked past $120. A similar cooling is evident on the Multi Commodity Exchange of India, where silver futures are currently hovering around Rs 2.21 lakh per kilogram, significantly below their early 2026 record levels of about Rs 4.2 lakh.

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However, market watchers warn against interpreting this severe price correction as a breakdown of silver's structural investment case.

Volatility Vs Fundamentals

Max Baecker, president of American Hartford Gold, told NDTV Profit that while speculative trading frequently amplifies silver's price swings, the metal's underlying fundamentals are firmly anchored by green-energy consumption.

"Silver's volatility doesn't erase its fundamentals, although speculative trading can amplify its price swings," Baecker said in an emailed interaction. "Its uses in electronics and solar power give it an additional source of demand while making it more sensitive to an economic slowdown."

Because the global silver market is significantly smaller than the gold market, institutional money moving in or out can trigger disproportionate price impacts. Baecker noted that while there is a credible long-term case for silver, anyone buying it should be prepared for a "bumpier ride."

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This sentiment is shared by global commodity researchers who track the structural supply-demand mismatch in the physical silver market.

Despite a recent softening in solar-module silver use caused by high prices, the market remains in a severe shortage. Philip Newman, Managing Director at Metals Focus, recently highlighted that the global silver deficit is projected to widen to 46.3 million ounces this year.

While short-term macroeconomic headwinds have triggered speculative exits, Newman warned that the physical market remains extremely tight. While London lease rates have temporarily normalised, "another liquidity squeeze this year remains possible", Crux Investor quoted him as saying in August. 

No Defined Timeline For Recovery

While the industrial thesis remains strong, experts are cautious about predicting a return to the January 2026 peaks anytime soon.

Baecker pushed back against assigning a rigid five-year clock for a full recovery or pinpointing a precise price target for 2027. He explained that the outlook depends heavily on whether global industrial use remains resilient and how readily mining supply can respond to the ongoing global deficits.

A deeper global economic slowdown could easily delay that recovery by dampening industrial orders, Baecker pointed out. The analyst is of the view that while the near-term macroeconomic environment remains challenging for non-yielding assets, silver's dual identity — as both a monetary metal and a critical industrial component — ensures its long-term shine is far from fading.

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