Current market context

Silver has experienced an extraordinary rally in 2025, with prices more than doubling this year amid structural supply-demand imbalances and robust industrial and investment demand. Recently it set fresh highs above US$80 per ounce but has pulled back sharply as traders booked profits and market mechanics such as higher futures margin requirements impacted leveraged positions. Despite the retreat, silver remains well above prior levels and continues to show strong year-to-date performance. 

Should you take profits now?

There is no single answer that fits all portfolios, but the recent pullback illustrates two typical dynamics:

Profit-taking and volatility are normal after large gains. Traders frequently reduce exposure after dramatic rallies to lock in gains, especially when momentum indicators become overstretched or risk metrics (like margin requirements) tighten. 

Underlying drivers remain significant. Structural supply deficits, declining inventories on major exchanges, and sustained industrial demand (for EVs, solar, electronics, data centres) are still influential. Even after corrections, support from these fundamentals suggests that the market may not have exhausted its bullish drivers. 

A disciplined strategy might involve scaling out positions rather than exiting entirely and considering risk limits appropriate for your financial situation.

Is the super bull run over?

Not necessarily. The intensity of the recent rally does raise the probability of cyclical pullbacks or periods of consolidation, but:

Analysts and market surveys show that a significant proportion of investors still expect silver to test higher levels in 2026, including the psychologically-important US$100 mark. 

Major forecasts indicate silver may average higher throughout 2026 given continued structural demand and potential monetary easing. 

That said, intermediate retracements and sideways trading are typical after sharp advances. Mean reversion and range-bound movement should not be ruled out.

Could silver reach US$100 in 2026?

There are bullish scenarios that support this possibility:

Fundamental catalysts, such as ongoing supply shortages, strong industrial use, and potential further easing by central banks, could lift prices. 

Sentiment and technical dynamics, including a compressed gold-silver ratio and renewed safe-haven demand during geopolitical uncertainty, may amplify gains beyond fundamentals. 

At the same time, forecasts vary. Some analysts see more modest ranges (for example, US$70-US$90) if market conditions remain supportive but not extreme. 

Key risks and considerations

Volatility and technical corrections are common in commodities with high beta like silver. Rapid price moves higher often lead to sharper pullbacks. 

Macro shifts, such as unexpected changes in interest rates, stronger US dollar, or weaker global growth, could temper precious-metal demand.

Supply adjustments, including increased recycling or mine output responses to higher prices, may eventually ease structural deficits.

Practical guidance

A balanced approach might involve:

Setting clear profit-taking levels and risk limits

Using staggered exits or hedges around key psychological levels such as US$100

Monitoring macro signals (interest rates, dollar strength, geopolitical developments) closely

If you are a long-term investor, you may consider maintaining a core position while trimming around spikes to reduce risk.