Nitesh Shah, Head of Commodities and Macroeconomic Research at WisdomTree, forecasts silver will recover toward $70 per ounce by the second quarter of 2027, driven primarily by stronger gold prices and improving fundamentals. The prediction follows silver's correction from January 2026, when speculative trading briefly pushed prices above $120 per ounce before retreating. Silver's recent volatility has disappointed investors, but Shah argues the pullback is necessary to establish a more sustainable bull market supported by industrial demand rather than momentum trading.
Silver Maintains Support Above $50 Despite Year-to-Date Decline
Spot silver last traded at $59.72 per ounce, up nearly 2% on the day, maintaining critical support above $50 per ounce despite persistent volatility. The metal is down 18% year-to-date following January's speculative surge, though prices remain 60% higher compared to one year ago. Shah stated in an interview with Kitco News last month that investors should not interpret the correction as evidence of deteriorating long-term fundamentals. "Silver just moves with gold, right? With a high beta," Shah said. "It was true on the way up, it's got to be true on the way down."
Shah wrote in WisdomTree's latest outlook that silver's advance toward $70 per ounce represents "a fundamentally supported move rather than a repeat of January's speculative spike." He noted that "silver's exuberance in January 2026 is now clearly in the rear-view mirror."
Industrial Consumers Welcome Price Correction After January Spike
Lower silver prices provide relief for industrial consumers that struggled with January's rally, according to Shah. WisdomTree's report warns that silver prices above $120 per ounce would have accelerated industrial demand destruction, while prices around $60 per ounce are likely to encourage manufacturers to reduce silver usage where possible. "Manufacturers have to face a 60% higher cost. That's not easy to bear," Shah said during the interview, noting that manufacturers have been forced to absorb dramatic input cost increases despite the recent correction.
The pressure is particularly acute in the solar sector, where silver represents a meaningful share of production costs. "When you're a solar panel manufacturer, for example, silver's a large part of your cost base. You'd look to other technologies," Shah said. Softer Chinese solar demand, easing inventory tightness and a gradual increase in mine supply should help cool the market after January's speculative surge, according to WisdomTree's report. Shah stated that bringing prices back to more sustainable levels ultimately protects silver's growing industrial demand, one of the metal's biggest long-term advantages.
Gold Rally Expected to Drive Silver Recovery
WisdomTree expects gold to climb above $4,560 per ounce within the next 12 months, providing the primary catalyst for silver's recovery toward $70 per ounce by the second quarter of 2027. Shah remains constructive on the investment outlook because silver should continue benefiting from the same macroeconomic forces supporting gold. Unlike gold, silver's smaller market and larger retail investor base make it inherently more volatile. "Silver is a smaller market than gold and has a significant degree of retail participation," Shah wrote. "As a result, it is more prone to speculative episodes."
FAQ
What is WisdomTree's silver price target for 2027?
WisdomTree forecasts silver will recover toward $70 per ounce by the second quarter of 2027, driven primarily by stronger gold prices and improving fundamentals rather than speculative trading.
Why does Nitesh Shah view silver's correction as positive for the market?
Shah stated that lower prices provide necessary relief for industrial consumers, particularly solar panel manufacturers, who struggled with January's spike above $120 per ounce. The correction helps prevent industrial demand destruction while establishing a more sustainable price level supported by fundamentals rather than speculation.
