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Below the Quote on Silver up 30% in 2026 & the Outlook for the metal heading forward by Aamir Makda, Commodity & Currency Analyst, Choice Broking

"As of mid January-2026, Silver has delivered nearly 30% returns, mounting on the momentum of 2025. Silver has reached to $93 / ounce, a level once considered unthinkable, driven by a "perfect storm" of industrial scarcity and geopolitical shifts. Silver has evolved into a crucial industrial commodity, driven by three key technological trends: the expansion of solar photovoltaic capacity, increasing demand from electric vehicles which require significantly more silver than traditional cars, and the rising needs of AI and data centres reliant on silver-based components. Concurrently, the market faces a structural supply deficit exacerbated by China's strict export licensing and limited mining growth, resulting in a severe drop in inventories. Global deficit of Silver has been projected to ~230 million ounce so far in 2026. Adding to these, macroeconomic factors, including anticipated interest rate cuts and geopolitical tensions in Iran & Venezuela, have bolstered Silver's safe-haven appeal, further contributing to its demand as investors seek stability amidst volatility. The notable decline in the gold-to-silver ratio signals a potential bullish trend for silver in the coming years. Gold/Silver ratio has declined to its historical average mark i.e. 50 : 1 as on date which shows that Silver is outperforming the Silver price. Trump's latest tariff declaration on European countries to increase tariffs by 10%, which could rise to 25% by June, has offered an additional lift to Silver.

Looking at Technical charts, we are expecting further upward momentum in Silver and immediate support would be at 20-DEMA level placed at 255,100. Daily SAR is placed at 249,500. For the upside levels, 261% of Trend based Fib. Extension which is placed at 362,937. Although, in recent sessions, with price’s upmove, we have observed a RSI bearish divergence on Daily charts which is a classic “Red flag” warning. It suggests that while the price is still climbing and hitting new peaks, the internal momentum driving those gains is actually weakening. Along with this, we can see the fall in OI levels to 9850 lots parallel to price-rise so far in March contract which suggests a Long unwinding in Silver. Traders who already have long position, should look for a profit-booking at current levels".

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