Silver Prices Rally in 2025-2026: Bull Market Amid Volatility and Supply Concerns

The white metal has captured investor attention at the 2026 Vancouver Resource Investment Conference, with silver prices commanding center stage. At a dedicated market forecast panel, industry experts discussed the factors behind the dramatic price movements and what lies ahead for the metal. Over the past five years, silver prices had remained relatively flat, hovering between $20 and $25 per ounce. That changed beginning in mid-2024, when the metal climbed through the $30 threshold. However, the real acceleration occurred throughout 2025. Prices pushed through $35 in June, reached $40 by September, crossed $50 in October, and then experienced a historic surge in December that pushed silver prices to a record $116 by late January. This represents one of the most dramatic moves in the precious metals market in recent history, drawing comparison to previous bull markets while raising questions about sustainability and risk.

The Supply-Demand Imbalance Driving Silver Prices Higher

What’s behind this extraordinary move in silver prices? Experts at the conference identified a structural mismatch between supply and demand as the primary catalyst. The white metal currently operates in a six-year supply deficit, with forecasts suggesting this imbalance will persist through 2026 and potentially beyond. This persistent shortage fundamentally differs from gold’s dynamics, as Peter Spina, CEO of GoldSeek, explained during the panel: “You buy gold to prevent losing money, and you buy silver to make money, to buy more gold.”

The challenge on the supply side is particularly acute. Today, most silver comes as a byproduct from mining other metals like copper and zinc—mines aren’t primarily extracting silver itself. Glenn Jessome, President and CEO of Silver Tiger Metals, outlined the severity of the situation: in 2025, only 52 primary silver mines operated worldwide. By the end of 2026, that number is expected to decline to 46, falling further to 39 by 2027. Despite higher silver prices that theoretically would incentivize new production, starting a new mine takes an average of 17 years from the first drill hole to commercial production. Moreover, only 1 in 1,000 exploration projects reach the commercial stage. This reality means the supply deficit cannot be quickly resolved through new capacity, regardless of price incentives.

Industrial Demand and Strategic Importance Reshape Silver Prices

On the demand side, silver prices have benefited from multiple expanding use cases. While solar panel production remains the highest-value application driving industrial consumption, silver has become critical to automotive, electronics, and defense sectors. Peter Spina emphasized the strategic dimension: “We wouldn’t have a modern civilization without silver. It’s used in a myriad of different places, and what is interesting now is that silver is very critical to the national defense of the US, of China, of big superpowers. So it’s becoming weaponized.”

This geopolitical importance reached an official milestone in 2025 when the United States designated silver as a critical mineral, placing it alongside copper for strategic stockpiling purposes. This designation suggests that government-level accumulation may be accelerating behind the scenes. Additionally, investment demand has surged, with institutional investors who had been absent from silver markets for years returning as net buyers. These converging demand drivers—industrial growth, energy transition needs, AI infrastructure, and strategic government interest—have created a powerful tailwind for silver prices.

Navigating Volatility: When Corrections Meet Bull Market Strength

Despite the fundamental support for higher silver prices, the conference consensus addressed an important caveat: the market is exhibiting characteristics that suggest caution is warranted. Expert panel members agreed that while silver remains in a genuine bull market, the recent ascent has been unsustainable, with silver prices moving multiple percentage points above technical resistance levels like the 200-day moving average.

Peter Krauth, editor of Silver Stock Investor, provided historical perspective. During the 2001-2011 silver bull market, prices climbed from $4 to nearly $50, but along the way experienced five corrections of 15% or more, with an average correction of 30%. Applied to current silver prices, such a correction would bring prices down to the $75-$80 range—a significant pullback but still historically elevated. The panel agreed that such corrections are not only possible but likely healthy for market sustainability. Indeed, a correction began around late January 2026, pulling silver prices back below $70.

Maria Smirnova, senior portfolio manager at Sprott, urged investors toward a patient, strategic mindset. “I would urge people to think, sit back, and think about the reasons why silver ran in the first place, and whether those reasons are continuing right now, and they will. I think the fundamentals haven’t changed for silver, using corrections as opportunities to reload, to enter, to buy things that you know you like as an investor.”

Peter Spina echoed this balanced perspective: “I would be very, very cautious in trying to trade this, especially with leverage or anything like that, but I do think that we’re in the revaluation phase. Silver could go a lot higher, but along the way, we can get some very vicious pullbacks, and so one has to be ready for those events.”

Market Reality: How Rising Silver Prices Impact Miners and Investors

A key insight often overlooked involves how dramatically changing silver prices affect the economics of mining projects. Peter Krauth noted that most mining company projections currently use price assumptions approximately two-thirds below current spot prices. When silver prices move from the historical $30-40 range to $100+, the cash generation potential from existing projects transforms dramatically. “So when the next few quarters come in and the market starts to realize what kind of cash these projects are generating, I think that’s when the reality will start to set in.”

This dynamic suggests significant revaluation potential for mining equities as investors incorporate higher silver price assumptions into their valuations. Additionally, the broader market context makes these moves remarkable: the entire annual silver market—combining newly mined production and scrap supply—produces approximately 1 billion ounces. At $30 per ounce, this represents a $30 billion annual market; at $100 per ounce, it becomes a $100 billion market. Put in perspective, this $100 billion annual market is dwarfed by individual large-cap tech companies worth multiple trillions. Therefore, relatively modest capital inflows can produce substantial percentage moves in silver prices.

Investment Takeaway: Riding the Volatility With Strategic Vision

The panel consensus pointed toward several key conclusions. The primary drivers of higher silver prices—supply deficit, industrial demand expansion, strategic government interest, and returning investment demand—remain intact and show no signs of reverting. Energy transition initiatives, artificial intelligence infrastructure, and national defense considerations all ensure continued silver demand growth.

However, the recent run-up in silver prices has occurred too rapidly to be sustainable without corrections. These corrections should be viewed not as bull market failures but as healthy rebalancing within a broader uptrend. Investors who maintain conviction in silver’s fundamental story can use price pullbacks as entry opportunities rather than signals to exit. The structural deficit in silver supply and the expanding industrial applications suggest that higher silver prices represent a revaluation of the metal to reflect these realities, not a temporary spike destined to reverse. For those navigating this volatile environment, patience, perspective, and strategic positioning appear to be the keys to success in the evolving silver market.