Bank of America Predicts Silver Could Go As High As $309/ounce In 2026
On January 5th, Bank of America's Head of Metals Research, Michael Widmer, released a stunning forecast.
He projects that silver prices could reach between $135 and $309 per ounce in 2026.
As of this morning, silver is trading around $90 per ounce, which is already a massive rally for the precious metal over the last 12 months.
And Bank of America suggests it could potentially quadruple from here.
This represents a generational buying opportunity. But first, let's look at why BoA is making such a bold prediction.
The Perfect Storm for Silver
The story behind silver's potential isn't complicated. We face a perfect storm of three powerful forces converging at once:
- A structural supply crisis
- Exploding industrial demand
- A flight to safety that is only getting started
The Supply Crisis Is Real
Let's start with the supply problem. It is more serious than most people realize. Silver has already been in a supply deficit for five consecutive years.
In 2025, global demand reached 1.24 billion ounces. Mine production only delivered 813 million ounces. That means there is a 400 million ounce gap between what the world needs and what miners can provide in a single year.
Think about that for a moment. The world consumes far more silver than it produces. This has happened year after year. Cumulative deficits since 2021 have exceeded 800 million ounces.
Physical inventories in London, Shanghai, and major U.S. exchanges have been drawn down to multi-year lows. Put another way, silver is disappearing from vaults faster than it can be replaced.
Industrial Demand Is Exploding
Supply is only half the story. The real driver is where the demand comes from.
Silver isn't just a precious metal anymore. It has become a critical industrial commodity. It sits at the heart of the technologies defining our future.
Solar panels, electric vehicles, AI data centers, and advanced electronics all require silver. It has the highest electrical conductivity of any metal.
These industries are growing at massive rates. They consume silver faster than ever. Once silver is used in production, it is removed from the supply forever. Supply is always limited.
The U.S. government recognized this reality in 2025. They added silver to the official list of critical minerals, putting it in the same category as rare earth elements essential to national security.
Silver as a Wealth Shield
Then there's the third factor.
This might be the most important for your retirement savings. We see a massive shift in how investors view silver as a store of value and hedge against economic uncertainty.
Silver surged over 140% in 2025. It climbed from around $29 per ounce at the start of the year to nearly $80 by year's end. It outperformed gold by more than double.
And it's already had a massive start to 2026 in just the first couple weeks.
This isn't just speculative fever. Institutional money, central banks, and everyday Americans are recognizing that something fundamental has changed in our economic landscape.
The reasons are all around us. National debt continues to balloon. Government spending shows no signs of slowing. The dollar's role as the world's reserve currency is being challenged in ways we haven't seen in decades.
Central banks around the world have been buying precious metals at record levels. Gold reserves now exceed their holdings of U.S. Treasuries for the first time in modern history.
The Federal Reserve's monetary policy remains in flux. Even as inflation persists above target levels, the pressure to cut rates and ease policy continues to build.
This creates an environment where the purchasing power of cash-based assets gets eroded. Hard assets like precious metals tend to preserve and grow wealth.
The Math Behind $309 Silver
Bank of America's Michael Widmer pointed out something crucial in his analysis. The current gold-to-silver ratio sits around 51 to 1. Which is really high.
Historically, during precious metals bull markets, this ratio has compressed dramatically.
In 2011, it reached 32 to 1. In 1980, it hit 14 to 1.
If we see similar compression this time around, the math is exciting. At a ratio of 32 to 1 with gold at current levels, silver would trade around $135 per ounce.
At a ratio of 14 to 1 like what happened in 1980, you're looking at $309.
Past performance doesn't guarantee future results. However, the fundamental case for silver has never been stronger. You have constrained supply, surging industrial demand, and growing investment demand all happening simultaneously. That's rare.
There is one more catalyst that just went into effect on January 1st. Most people haven't heard about it yet. China implemented new export restrictions on refined silver.
Since China controls between 60% and 70% of the world's refined silver supply, these export restrictions are already creating supply shocks in global markets. This will only get more serious as the year goes on.
Where Does This Leave You?
If you are like most Americans over 55 with retirement savings in 401(k)s, IRAs, or other traditional accounts, you are probably watching all of this unfold with a mix of concern and uncertainty.
The stock market feels overvalued. Bonds aren't providing the safety they once did. Cash is losing purchasing power to inflation. The economic and political landscape seems more uncertain than it has in years.
This is exactly why precious metals, and silver in particular, are the best way to protect and grow your retirement savings this year.
Silver offers something unique. It is affordable compared to gold, making it accessible for investors at any level. It has industrial demand that provides a fundamental floor under prices. It has monetary properties that make it a hedge against currency debasement and economic instability.
You get both the industrial metal and the precious metal characteristics in one asset.
Supply-demand fundamentals this tight, combined with the macroeconomic backdrop we face, don't come around often. When they do, the investors who position themselves early are the ones who benefit most.
Secure your financial future today.
Contact National Gold Group to learn how physical silver can protect your retirement assets from the coming supply crunch.
