Silver’s sharp correction after reaching a record high in January 2026 disappointed many investors. However, according to WisdomTree, the pullback may have helped remove excessive speculation and create a healthier foundation for a more sustainable bull market.

WisdomTree Forecasts Silver at $70

Nitesh Shah, Head of Commodities and Macroeconomic Research at WisdomTree, expects silver prices to recover to around $70 per ounce by the second quarter of 2027.

Unlike the speculative rally that pushed silver above $120 per ounce earlier this year, the next advance is expected to be supported by improving fundamentals, particularly continued strength in gold.

WisdomTree forecasts that gold could rise above $4,560 per ounce within the next 12 months, providing a major catalyst for silver’s recovery.

The $50 Level Remains Important Support

Despite continued volatility, silver has remained above the key $50-per-ounce support level. At the time referenced in the report, spot silver was trading near $59.72 per ounce, up almost 2% on the day.

According to Shah, the multi-month correction does not mean silver’s long-term outlook has deteriorated. Silver typically moves in the same direction as gold, but with greater sensitivity, rising faster during bullish periods and falling more sharply when sentiment weakens.

Lower Prices Could Help Restore Industrial Demand

Silver prices above $120 per ounce placed significant pressure on industrial demand. Even prices near $60 may encourage manufacturers to reduce silver usage wherever possible.

This pressure is particularly significant in the solar energy industry, where silver accounts for a meaningful share of production costs. When input prices rise too far, manufacturers are more likely to reduce silver consumption or adopt alternative technologies.

Bringing silver back toward a more sustainable price range could help protect one of its strongest long-term advantages: growing industrial demand.

Volatility Risks Remain High

The silver market is smaller than the gold market and has a higher level of retail investor participation. As a result, it is more vulnerable to speculative swings and can experience sharper price movements than many other assets.

Although the long-term outlook remains positive, the path toward $70 is unlikely to be smooth. Financial markets rarely have the decency to move in a straight line.

Conclusion

The recent correction may represent a necessary reset for the silver market following an overheated period of speculation.

If gold prices continue to rise, industrial demand stabilizes and mine supply does not expand too quickly, the $70-per-ounce target by the second quarter of 2027 could gain stronger support.

However, investors should remember that silver remains highly volatile and sensitive to speculative flows, gold prices and the broader global economic outlook.

Source: Kitco