Silver is currently wild. I've been following this for a while, and what happened in January 2026 was historic. The price exploded to $121.62 per ounce – an all-time high. Then: a crash of over 30% in less than 24 hours. That hasn't happened since 1980. Now, the price is hovering around $84, and the question is: what's next?

The backstory is interesting. 2025 was an insane year for silver – the price increased by 147%. That was no coincidence. As early as the 1970s, the Hunt Brothers tried to dominate the entire silver market, leading to extreme price fluctuations. In the 2010s, there was again trouble with market manipulation. And now, in 2026, we are apparently experiencing such extreme movements once more.

What drives this? On one hand, a structural problem: demand far exceeds supply. The silver market has been running a deficit for the sixth consecutive year – nearly 820 million ounces cumulatively since 2021. Mine production is stagnating, but demand for silver for solar, electric vehicles, and AI infrastructure is exploding. This is bullish for a silver forecast in 2025 and beyond.

On the other hand: the US dollar. When the dollar becomes strong, silver becomes expensive for international buyers. The nomination of the new Fed chair sparked expectations of tighter monetary policy – and boom, a crash. This shows how sensitive this market is to interest rates and currencies.

Analysts are divided. Some expect $150 by the end of 2026, others $50. The silver forecast for 2026 is simply extremely uncertain. What’s clear: in the long term, the fundamentals point to higher prices – scarcity, rising demand, inflation hedge. But in the short term? It’s a gambling market.

Physical demand from Asia is also wild. In Hong Kong, silver bars were sometimes sold out within hours. People see silver as a cheaper alternative to gold. That supports the bullish silver forecast.

Conclusion: silver is highly volatile, but the reasons for a long-term upward trend are there. Structural deficit, growing industrial demand, inflation protection – all of this points to higher prices. But anyone looking to invest should be aware: it can drop 30% at any time. The silver forecast heavily depends on how the dollar and Fed policies develop.