Silver prices have seen some very volatile sessions over the past week. Even in today’s trade MCX Futures jumped 3% intra-day. As of 05:12 pm, the March delivery contract of silver was up 6.18% trading at Rs 2,68,150 per kg.
The white metal has posted one of its best performances since the 1980s as spot silver was shot up close to $120/oz mark on January 29, 2026. Then, in just over a week, the metal took a hit and tumbled by nearly 40% from its record high to $64/oz on February 6, 2026.
However, since then prices have steadied and are now trading near the $82-84/oz mark.
Fundamental drivers for Silver
According to the Silver Institute, the underlying demand-supply fundamentals for silver remain supportive, and the silver market is expected to remain in deficit for a sixth consecutive year in 2026.
According to a Bloomberg report, China’s silver stockpiles are being drained by heavy investment and industrial demand.. It added that the silver contract on Shanghai Futures Exchange (SHFE) with the nearest expiration date has surged to a record premium, reflecting the demand for prompt deliveries as supply lags.
The report by Bloomberg explained that demand for investment bars stays high as the physical stocks for the white metal are sold off quickly in China’s Shuibei market in the city of Shenzhen, adding that buyers are very willing to purchase the bullion bars at premium prices.
Falling inventories in China
Market commentators have added that silver continues to witness supply tightness in China, which is one of the largest producers of silver.
Financial publication The Kobeissi Letter, in a social media post on X, explained that silver inventories on the Shanghai Futures Exchange (SHFE) are collapsing.
It added that delivery for Shanghai’s silver has plunged to 350 tonnes, marking its lowest levels since 2015.
Local stocks in China also took a hit as the country exported heavily to London last year.
Analyst and strategist views
American economist Peter Schiff, in a social media post on X, said that despite the dip in prices of silver and gold, mining stocks are holding well, signalling a bullish outlook for both miners and metals.
Speaking on the silver market, commodity strategist Ole S. Hansen said in a post on X that silver prices are calming down as trading in Shanghai is becoming smoother ahead of the upcoming Lunar New Year break.
Wall Street strategist David Hunter also remains ‘very bullish’ on silver, as he targets the white metal to reach the $180/oz mark by the second quarter.
High-conviction / extreme forecasts
In a video posted on X, precious metals analyst Michael Oliver said that silver could trade in the $300–500/oz mark this year.
He added that if February remains stable for silver, by March the white metal could go ‘ballistic’.
Oliver said that recent price corrections are largely over and it is likely many players would join in late as well.
Conclusion
With falling inventories in China, it is no wonder that experts are extremely bullish on the future prices of silver. Analysts have added that the physical supply of silver remains very tight, while most of the speculative trading has been wiped out.
“The only way to ease the market’s immediate tightness in supply is if smelters can ramp up production during the week-long Lunar New Year break,” Bloomberg quoted Jia Zheng, head of trading at Shanghai Soochow Jiuying Investment Management Co.
However, this is the time of year when industrial activity usually slows down, the analyst added.
Disclaimer: This article is provided for educational and informational purposes only. The views and price targets are expressed by third-party analysts (including those from social media and external reports) are their own and do not reflect the views of Financial Express.com. We do not verify the accuracy of third-party forecasts. Readers should not rely on this content as financial advice and are encouraged to consult with a professional advisor before making any investment decisions.