COMEX silver futures rose 3.35% to $70.13/oz on June 15, advancing for a third consecutive session. The rally was driven by the US-Iran peace agreement, set to be signed June 19 in Switzerland. The deal will reopen the Strait of Hormuz and ease concerns about inflation that have weighed on precious metals prices.
Silver prices have retreated from early 2026 peaks above $100/oz, but remain 88% higher year-over-year. The metal continues to trade in a volatile mid-$60s to mid-$70s range. The LBMA analyst consensus for 2026 average silver prices sits around $80/oz, suggesting potential upside from current levels.
The Silver Institute's World Silver Survey 2026 projects a sixth consecutive annual market deficit of 46.3 Moz in 2026. Cumulative drawdown from above-ground stocks since 2021 has reached an estimated 762 Moz, equivalent to many months of mine output. Mine production is expected to remain roughly flat in 2026.
Industrial silver demand fell 3% in 2025 to 657.4 Moz, with photovoltaic demand declining 6% to 186.6 Moz as manufacturers accelerated thrifting. The Silver Institute projects a further 3% decline in industrial demand in 2026, with PV the main drag, though AI/data center, automotive electronics, and grid sectors continue to expand.
Silver at $70/oz after pulling back from $100+ highs may offer a buying opportunity, but structural deficit dynamics persist. The US-Iran deal removes a near-term upside catalyst monitor the June 19 signing. Use dips toward $65-68 to layer in hedges on COMEX futures (5,000 oz per contract).