Persistent supply deficits and an expected gold price recovery underpin revised silver price targets despite recent declines.
Silver prices have dropped from USD 70 to USD 57.50 per troy ounce, prompting Commerzbank to lower its year-end forecast to USD 67 from USD 80. The 2027 target is now USD 80, down from USD 90, citing substitution in solar demand and Indian import curbs as headwinds.
The silver market recorded its fifth consecutive annual deficit last year, according to the Silver Institute and Metals Focus. Another deficit is projected for 2024, with supply declines outpacing demand reductions, tightening market fundamentals.
Commerzbank expects the anticipated rise in gold prices to drive silver higher, alongside persistent deficits. The bank maintains a bullish outlook despite near-term downward revisions.