Eric Sepanek
SBC Founder
Eric Sepanek is the founder of Scottsdale Bullion & Coin, established in 2011. With extensive experience in the precious metals industry, he is dedicated to educating Americans on the wealth preservation power of gold and silver.
Silver is set to hit $40 this year and $50 by 2026, according to Peter Krauth. The Silver Stock Investor author credits the simultaneous rise in industrial and investment demand, ongoing supply deficits, and positive market metrics for this bold price forecast. Under the right conditions, Kruath even thinks silver could explode to $300.
Bullish Demand Convergence
A shining light on silver’s future is the bullish convergence of steadily rising industrial demand and a recent influx of retail interest. Contrary to gold, which is primarily purchased for portfolio diversification, the gray metal boasts a dual role as an industrial and investment asset.
Krauth describes this binary end-use consumption as providing a “rising floor under the silver price.” In other words, these chief sources of demand offer the primary support for silver’s trajectory.
Industrial demand comprises the overwhelming majority of silver consumption, owing to the extensive use cases for silver.
On the other hand, he says, “It’s the investment demand that ebbs and flows, that comes back and causes these silver spikes.”
- Industrial Demand – Manufacturing and technological applications for silver rose from 50% to 60% of global usage over the past decade. Industrial appetite is predicted to grow in 2025, with a significant boost from the silver-reliant renewable energy sector.
- Investment Demand – Toward the end of 2024, global holdings in silver exchange-traded products rose 8% year-over-year, marking their highest point since mid-2022. This trend is expected to continue as more investors move to safe-haven assets amid market uncertainty.
A Tightening Supply
As silver’s demand sources are on track to rise, the silver supply is set to mark its fifth year of deficit in 2025. For nearly half a decade, the market’s total consumption has outpaced resources, putting significant upward pressure on silver prices.
Two Bullish Ratios
The silver market has various indicators that traders watch closely to gauge where prices might be headed.
Some metrics track performance compared to the gold market, while others look at the demand for various silver assets.
Currently, Krauth sees two key ratios flashing bullish signals, suggesting silver could be primed for a sharp near-term breakout.
Gold-to-Silver Ratio
This measures how many ounces of silver are needed to purchase one ounce of gold. It’s intended to determine the shiny metal’s relative value to its golden counterpart.
Recently, the gold-to-silver ratio spiked over 100:1, traditionally viewed to suggest silver is “undervalued” or “cheap” compared to gold.
Paper-to-Physical Ratio
This metric describes how many ounces of “paper” silver (such as futures contracts, exchange-traded funds, or mutual funds) exist for every ounce of physical silver bullion.
At an eye-popping 378:1, this may point to a market imbalance where silver promised on paper purchases is difficult to deliver. Krauth describes it as “well beyond any other futures market for metals.”
Where is Silver Headed?
Silver might fall behind gold’s momentous rise, but that may leave more room to run when the gray metal’s rally takes off. With renewed retail interest, sustained industrial demand, and another supply deficit, Krauth maintains a bright outlook for silver.
For this year, the silver enthusiast sees prices reaching $40, which is in line with the average expert 2025 price forecasts. His benchmark rises to $50 when looking to 2026.
These already upbeat predictions become even more bullish if silver can achieve “the biggest technical breakout setup in modern history.”
The shiny metal could clear up to $100 in “short order” and “eventually $300” if it can confidently bust through $50, according to Krauth.
He mentions famed silver investor Eric Sprott, who shares a similarly ambitious expectation of $250 to $500 silver.
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