Silver skyrockets past $60 to reach a new high! Shenbao Bank: Multiple positives resonating, bull market in 2026 still possible.

Shengbaobank released a report on Wednesday pointing out that due to multiple rare favorable factors such as monetary policy, market structure, and spot supply and demand resonance, the silver price has already doubled by 2025, breaking through the $60 mark to refresh a historical high. Looking ahead to 2026, the bullish trend in the silver market is expected to continue, but there is a need to be cautious of potential disruptions from certain risks. As of the time of writing, the spot silver price has risen by about 0.3% to $61.03 per ounce, with a cumulative increase of 111% so far this year. In contrast, spot gold has fallen by about 0.3% to $4199.46 per ounce. Ole Hansen, Head of Commodity Strategy at Shengbaobank, analyzed that supply shortages, insufficient price elasticity in industrial demand, and market mismatches driven by policies have collectively amplified the rise in silver prices, far exceeding what can be explained by the movement of gold alone. From a supply and demand perspective, loose monetary policies have provided support for silver prices, while spot market supplies remain tight. Increased demand in areas such as electrification, CECEP Solar Energy, electric vehicles, and data centers has made it difficult for mining companies to match production capacity; and the move by the United States to include silver in the list of key minerals further highlights this imbalance in supply and demand. However, the silver bull market is not without its concerns. Hansen pointed out that the current high valuation in the field of artificial intelligence (AI) could lead to a significant slowdown in related investments if there is a valuation correction, which would not only weaken the demand for silver in chips and data center infrastructure but also suppress overall market risk appetite. In addition, the relative valuation level is also worth noting: the current gold-to-silver ratio has fallen to around 68, basically in line with the 30-year historical average, significantly down from the high of over 105 in April. In historical terms, silver has moved out of the significantly undervalued range. Shengbaobank added that this valuation change will be particularly critical in a market environment where the dominance of supply and demand constraints is weakening. Against this background, silver may enter a period of consolidation, with some funds potentially flowing back into gold varieties, but not completely withdrawing from the precious metals marketafter all, gold and silver still serve as a hedge against fiscal risks, inflation pressures, and geopolitical volatility. From a technical perspective, the market is closely monitoring whether silver can stabilize in the $54-55 range. Shengbaobank emphasizes that if the silver price can break through this range and stabilize above it, it will strengthen the expectation of an upward shift in the 2026 trading range; especially as the bank predicts that gold prices are likely to challenge the $5000 mark, which will also provide support for silver prices.