Citigroup analysts are predicting that silver prices could surpass $40 in the next few months, driven by tighter physical supply and an uptick in investment demand.
In a memo released on Wednesday, a team of analysts led by Max Leighton raised their three-month price forecast for silver from $38 to $40, noting the solid fundamentals for the metal. They also revised their long-term forecast, targeting $43 over the next six to twelve months.
“We anticipate that silver availability will tighten, influenced by a persistent deficit, reluctant sellers who are holding out for higher prices, and strong investment interest,” the Citi analysts stated.
This year, silver has increased by more than 30%, even outpacing gold as investors seek safe-haven assets amidst global trade tensions. A significant portion of silver’s gains, nearly half, occurred in June, when the metal first closed above $39 per ounce—marking a 10% rise and its highest level since 2011.
Regarding the recent surge in silver prices, Citi analysts pointed out that the rise is grounded in its strong fundamentals, rather than merely an attempt to catch up to gold.
According to the analysts, silver is also expected to benefit from changes in the Federal Reserve’s monetary policy, referred to as “behind the Fed cut.”
Gold Warning
While potential currency easing could also favor gold, Citi takes a more cautious stance on traditional safe metals. They noted that gold’s price had already increased by over 27% in 2025, largely due to robust central bank purchasing and growth in exchange-traded funds.
In their analysis, the analysts reflected, “It seems likely we’ve reached a peak in gold prices,” alluding to the record high of $3,500 per ounce reached in April.
As detailed in the bank’s June report, anticipated dips in gold prices are attributed to declining investment demand, a more optimistic economic outlook, and projected cuts to U.S. interest rates.
Consequently, the analysts expect gold to stabilize above $3,000 in the upcoming quarter but predict it will drop below that threshold by next year. By the second half of 2026, they foresee prices falling further into the $2,500-$2,700 range.
