Bank of America Predicts Silver Could Hit $135–$309 by End of 2026
Michael Widmer, Bank of America’s head of metals research, projects silver prices between $135 and $309 per ounce by end-2026 based on 32:1 and 14:1 gold-to-silver ratios. The bank highlights a fifth consecutive annual supply deficit of 95 million ounces and a cumulative shortfall exceeding 820 million ounces since 2021.
1. Silver Price Targets Explained
Michael Widmer lays out a base-case target of $135 per ounce by applying a 32:1 gold-to-silver ratio and an extreme scenario of $309 per ounce using a 14:1 ratio, reflecting levels seen during historical squeeze events. The wide range underscores differing assumptions around liquidity events, delivery squeezes, or surges in physical demand.
2. Gold-to-Silver Ratio Methodology
The current gold-to-silver ratio sits near 59:1, with gold trading around $5,000 per ounce. Applying the 2011 ratio low of 32:1 yields a $135 silver price, while the 1980 extreme of 14:1 produces the $309 projection, illustrating how ratio compression can drive steep silver gains.
3. Structural Supply Deficit Trends
Industry data show silver recorded its fifth straight annual deficit of roughly 95 million ounces in 2025, with the cumulative shortfall since 2021 surpassing 820 million ounces. A sixth deficit of about 67 million ounces is forecast for 2026 amid plateaued mining output and lengthy development timelines for new projects.