Silver Just Did Something Unseen Since 2020: ‘One of the Best Buying Opportunities,’ Analyst Says

Silver has fallen so far, so fast, that the last comparable moment came when the pandemic froze the global economy.

That was March 2020.

Silver, which investors can follow through the iShares Silver Trust (NYSE:SLV), traded at $50.05 an ounce on Monday morning, up 1.9% after a 5.8% slide on Friday. Yet the 2026 selloff has been brutal.

The gray metal has wiped out nearly 60% of its value since its all-time record of about $122 an ounce in January 2026.

Its 200-day moving average stands at $70.73. As a result, the metal is trading about 29% below its long-term trend, the widest gap since March 2020.

In 2025, silver gained nearly 150%, its best year since 1979.

So how does a metal go from its best year in almost half a century to a crash this violent in so little time?

Silver’s distance from its 200-day moving average. Source: TradingView

Metal Expert Sees a Mid-Cycle Correction, Not the End of the Bull Market

For one closely followed metals investor, that discount is exactly why now could be the time to buy.

Analyst Tavi Costa, founder of Azuria Capital, flagged the same signal in his Substack newsletter on Saturday.

Silver could still break below $50 and test lower levels, he said. Over a 12- to 24-month horizon, however, he sees the setup as “one of the best buying opportunities of the cycle.”

His case rests on supply.

Between 2005 and 2011, rising silver prices pulled a wave of new output from Mexico, the world’s largest producer. This time, according to Costa, Mexican production has stayed flat despite the rally.

Gold tells a similar story. If the 10 largest gold miners meet their guidance, their combined output this year would sit near a 16-year low, Costa said.

Mining stocks are also deeply oversold.

The Amplify Junior Silver Miners ETF (NYSE:SILJ) has a nine-week relative strength index near 28, among the lowest readings in its history.

Meanwhile, the Global X Silver Miners ETF (NYSE:SIL) has started to hold up better than the metal itself. For Costa, that relative strength suggests sellers are running out of steam.

Bank of America Sees Silver at $75 by Mid-2027

Bank of America Global Research is also leaning bullish.

Commodity strategist Michael Widmer expects silver to average $55 an ounce in the fourth quarter. He then sees prices climbing to $75 in the second and third quarters of 2027.

Part of the demand story comes from artificial intelligence. Hyperscale data centers use about 708,000 ounces of silver per gigawatt of capacity, according to the bank. That is more than double the 318,000 ounces used by a traditional enterprise site.

Together, electrification, data centers and electric vehicles should deliver “a material and persistent increase in metals consumption,” Widmer said in a note on Friday.

Still, the bank’s own numbers point to a softer patch first.

Bank of America expects a small silver surplus of 910 tonnes this year, after a deficit of about 8,650 tonnes in 2025. A shift in solar panel technology is set to cut silver consumption by 11% in 2026, according to the bank.

The market should swing back into a deficit of 852 tonnes in 2027. However, the bank warns that faster substitution of silver in industrial uses could cloud the longer-term outlook.

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