Global precious metals markets have experienced a sharp acceleration in investor interest. Global investment bank Citi revealed on Tuesday that silver prices have surged far beyond expectations, prompting a major upgrade to its short-term outlook and reinforcing its long-standing bullish stance on the metal.
Maximilian Layton, Global Head of Commodities Research at Citi, said:
“We have been bullish silver both outright and relative to gold for many months, and remain so over the coming weeks.”
His remarks come as silver has entered a phase of historic volatility, surging roughly 270% over the past year to reach record highs near $117 per ounce. The parabolic move has been driven by a persistent five-year structural supply deficit and aggressive retail demand, particularly in China and India.
While industrial consumption linked to solar deployment and artificial intelligence infrastructure continues to provide a durable demand floor, recent price action has increasingly reflected capital flows and a pronounced short-squeeze mentality. This shift has pushed the market into deep backwardation, signaling an urgent scramble for physical metal and intensifying short-term dislocations across futures and spot markets. Layton described silver’s behavior as “ gold squared” and “ gold on steroids,” illustrating how momentum and positioning have overtaken traditional valuation anchors.
Read more: Robert Kiyosaki Predicts Silver to Hit $200 as He Buys More Bitcoin
The rally has already forced the gold-to-silver ratio below 50, reinforcing expectations that silver will continue to outperform gold. Pointing to heightened geopolitical risks and renewed concerns over Federal Reserve independence that are stimulating strong investment and speculative demand, Layton stated:
“We remain tactically bullish and upgrade our 0–3 month price target to $150/oz.”
China has emerged as the primary engine of the surge, with India and broader global retail participation adding pressure as premiums in Shanghai and India climbed sharply despite falling ETF holdings and declining Comex positioning. Chinese authorities have tightened conditions by suspending new subscriptions in the country’s only silver ETF and raising margin requirements on the Shanghai Futures Exchange.
“We do not consider these measures to be sufficient in containing retail investment demand,” Layton added, noting that trend-following behavior among Chinese retail investors could further tighten the market. Looking further back, historical relationships suggest that a return to prior lows in the gold-silver ratio could justify prices in the $160–170 range, while “revisiting of the post-Bretton Woods low of 14x in 1979 would point to mid-to-high-$300/oz range in an extremely unlikely scenario.”
- Why did Citi upgrade its short-term silver price outlook?
Citi raised its 0–3 month target to $150/oz after silver surged ~270% year-over-year due to a persistent structural supply deficit, aggressive retail inflows, and a short-squeeze-driven scramble for physical metal. - What key factors are driving silver’s extreme volatility and price surge?
Silver’s rally is being fueled by a five-year global supply deficit, strong retail demand led by China and India, and capital-flow momentum that has overtaken traditional industrial-demand valuation models. - How does silver’s performance compare to gold from an investment perspective?
With the gold-to-silver ratio falling below 50, Citi expects silver to continue outperforming gold, reflecting heightened speculative demand, geopolitical risk hedging, and leveraged positioning. - What are the upside price scenarios for silver according to Citi?
Citi suggests historical ratio reversion could justify $160–170/oz silver, while extreme and unlikely conditions could imply prices in the mid-to-high $300/oz range.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
