Citi sees silver rallying to $90 on surging investment demand

Silver prices could surge to $90 per ounce as investment demand overtakes supply, according to a note from Citi released on Monday.

The bank’s analysts highlighted a structural shift in silver markets, driven by increased physical and exchange-traded fund (ETF) demand. This follows years of underinvestment in mining, which has constrained supply growth despite rising industrial and monetary uses.

Citi’s outlook assumes continued central bank purchases, particularly from emerging markets, alongside steady demand from solar panel manufacturers and electronics sectors. The bank also pointed to silver’s dual role as both a precious metal and an industrial commodity, which could amplify price movements in either direction depending on macroeconomic conditions.

The $90 target represents a significant premium to current spot prices, which were trading near $28 per ounce as of Monday’s close. Analysts noted that such a rally would require sustained inflows into silver-backed ETFs and a prolonged period of supply deficits, conditions that have not been consistently observed in recent years.

Citi’s projection is among the most bullish in a sector where price forecasts vary widely. Other institutions have cited silver’s volatility and the potential for substitution in industrial applications as risks to sustained rallies. The bank acknowledged these factors but maintained that structural demand drivers outweigh short-term headwinds.

For investors, the call underscores silver’s evolving role in portfolios, particularly as a hedge against inflation and currency debasement. However, the bank cautioned that such a rally would likely require a combination of geopolitical instability, persistent inflation, and supply-side constraints to materialize.