Contrary to the turmoil seen in the cryptocurrency market, silver is lingering in its all-time high region over the past three trading days. While Bitcoin 
$77,690 has plummeted to $85,000 and altcoins have suffered losses exceeding 5%, silver remains robust, trading above $63.5. This brief dip swiftly turned into a resistance breakthrough today, offering hope for those awaiting higher peaks.
Silver and Gold Price Targets
In today’s market assessment, analyst Hajiyev Rashad shared his two to three-week targets for both gold and silver. According to him, gold is expected to surpass $4,700 soon, while silver aims to reach a new all-time record of $75. While these forecasts appear ambitious, analysts tend to retreat into their shells during downturns despite these daring predictions amidst rising markets.
The same analyst had commented on last Friday’s decline before today’s acceleration in gains, stating:
“Spot silver climbed back above $63 after a 6% drop last Friday. I’m certain this decline has deterred many previously unconvinced buyers from the market. The decline seems to have ended.”
Gold also made a similar rapid recovery in losses, surprising the analyst himself. His short-term estimate of $4,700 is encouraged by the chart below.
Will Silver Prices Drop?
The rapid rise over the last month suggests a pause may be needed according to the RSI indicator. Friday’s decline is viewed in this context; however, prices have rebounded quicker than expected. The long-term rise in silver prices is attributed to supply not meeting demand. There are ongoing debates about paper silver exceeding physical silver.
According to reports from the Silver Institute and mining data, global silver production (813 million ounces) fails to meet industrial demand (especially for solar panels and AI chips). Chinese and London reserves are dwindling, with expected restrictions on China’s silver exports beginning in January. These factors fuel expectations that the supply-demand imbalance will further increase prices.
ING Bank considers this surge unsustainable but believes structural supply deficits might keep the price around $55 next year.
Saxo Bank linked the recent drop to a wider AI bubble scenario, though this was short-lived. They expect industrial demand to keep silver in high demand.
JPMorgan and Citi initially predicted much lower levels for this year. The ceiling prediction was $40, far exceeded by prices above $63, suggesting that bubble and FOMO narratives might not be entirely unfounded.
In the long term, industrial mineral demand may continue, but this doesn’t mean a correction is not forthcoming after a more than 100% increase in 2025. Even the best altcoins haven’t risen as much as silver this year, indicating significant risks.
