Silver holds at £48.57 an ounce as forecasters eye a widening supply deficit

Silver was little changed on Saturday at around £48.57 a troy ounce, or about £1.56 a gram before dealer costs, according to LivePriceOfGold.com, with spot near $64.34 in dollar terms. Gold was trading around £3,235 an ounce, putting the gold to silver ratio at roughly 66.7, so it currently takes about 67 ounces of silver to buy one ounce of gold.

Beyond the daily price, several analysts see the case for silver strengthening into next year. The Silver Institute notes that solar panel manufacturing now accounts for around 29 per cent of industrial silver demand, up from 11 per cent in 2014, with electric vehicles and data centres adding further support. Mine supply has fallen by an estimated 80 million ounces over the past decade, and TD Securities says drawn down stockpiles now cover nearly two years of global deficits, a sign of how tight the physical market has become.

Price forecasts vary widely: Heraeus sees a 2026 range of $43 to $62 an ounce, BMO Capital Markets expects an average near $56.30, and more bullish analysts have floated $75 to $100 if the gold to silver ratio falls towards its long term norm of 40, rather than the 50 to 60 typical of recent years.

For UK buyers, silver bullion carries 20 per cent VAT, unlike investment gold coins and bars, which are VAT free, so comparing all-in prices, spot plus premium, VAT and delivery, matters most when weighing silver against gold. This is market information, not financial advice.