Silver Faces Technical Correction Despite Chronic Industrial Supply Deficits

Industrial Demand and Export Controls

Silver's long-term outlook is underpinned by massive demand from the solar and AI sectors. Furthermore, new Chinese export restrictions effective January 1, 2026, have begun to tighten global refined supply. Market observers suggest this policy shift makes silver a likely candidate to outperform gold over the next 12 months.

Price Discovery Phase

After surging over 120% in 2025, silver has entered a 'price discovery' territory. Support levels have formed at $72, and technical models suggest that if precious metals momentum persists, silver could challenge the psychological $100 barrier by late Q3 2026.