Quick overview
- Silver futures are experiencing heightened volatility, consolidating around $52.5–$54 per ounce as November trading begins.
- Immediate resistance is noted near $54.5–$55, with a breakout above $55 potentially targeting $60+.
- The silver market is facing its sixth consecutive annual deficit, with projected demand outpacing supply by 46.3 million ounces in 2026.
- Cumulative shortfalls since 2021 have exceeded 760 million ounces, while global mine output remains flat, limiting production increases.
Silver futures contracts enter November trading with elevated volatility after significant price moves earlier in the year: front-month/active contracts (November–December settlement) are consolidating around $52.5–$54 per ounce.
Immediate intraday resistance sits near $54.5 – $55. A clean breakout above $55 would open paths back toward intermediate targets outlined by major desk forecasts ($60+).
Technical support holds near $49.00–$50, with deeper key support down around $45.80–$47. Traders are closely monitoring the $50 level; failing to sustain above $50 signals potential downside tests toward the mid-$40s.
Market Structure: Despite pullbacks from 52-week highs, silver continues to trade well above historical multi-year baselines, reflective of persistent structural tightness in physical deliverable inventories.
According to the World Silver Survey and Metals Focus data, the silver market is running its sixth consecutive annual deficit. Total 2026 demand is projected at approximately 1.11 billion ounces against total supply (mine production + recycled scrap) of around 1.07 billion ounces, creating a forecast net supply gap of 46.3 million ounces.
Cumulative shortfalls since 2021 have surpassed 760 million ounces, continuously draining above-ground stockpiles, exchange inventories (COMEX/LBMA), and investor vault reserves.
Global mine output remains largely flat (estimated around 844–848 million ounces). Over 70% of silver is mined as a by-product of base metals (copper, lead, zinc), meaning miners cannot quickly ramp up silver production in response to higher prices without expanding primary base-metal operations.
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks the financial markets with over 20 years of working experience in investment trading