Deutsche Bank has reaffirmed its bullish outlook for silver, projecting that prices could reach $100 per ounce by the end of 2026 as investor positioning strengthens and white metals continue to outperform gold.

In a recent note, Deutsche Bank analyst Michael Hsueh pointed to renewed relative strength in silver and other white metals, suggesting the current rally may be diverging from historical patterns that typically see silver gains followed by partial retracements.

Gold-Silver Ratio Signals Strength

A key indicator supporting Deutsche Bank’s forecast is the gold-silver ratio, which recently fell to 57. The ratio measures how many ounces of silver are required to purchase one ounce of gold and is widely used to gauge relative value between the two metals.

The current reading sits below Deutsche Bank’s longer-term assumption range of 60 to 65 for the end of 2026 and 2027, indicating silver is gaining ground relative to gold faster than expected.

According to Hsueh, this shift suggests increasing investor confidence in silver’s upside potential, particularly as broader precious metals demand remains firm.

Sentiment and Market Signals Point Higher

Deutsche Bank also cited strong sentiment indicators. The silver three-month risk reversal, a gauge of options market positioning, has climbed to its highest level of the year and reached a 20-year high, signaling heightened demand for upside exposure.

In addition, the resumption of Shanghai M1-M2 backwardation in silver following the Lunar New Year holiday indicates tighter near-term supply conditions. Current backwardation levels remain elevated compared to January readings, reinforcing the bank’s constructive outlook.

Taken together, these factors present what Hsueh described as “upside risk” to the firm’s year-end silver forecast of $100 per ounce, based on an assumed gold-silver ratio of 60.

Broader Precious Metals Outlook

The silver forecast comes amid a broader rebound in precious metals. While silver and platinum lease rates had previously surged, they have since eased, even as white metals continue to outperform gold.

Hsueh also highlighted shifting dynamics in the gold market itself. Gold has recently crossed back into outperformance versus the U.S. dollar based on its trailing 60-day beta, a development Deutsche Bank views as supportive of its constructive gold thesis.

The bank maintains a base forecast of $6,000 per ounce for gold. However, Hsueh noted that if gold were to regain the same degree of dollar outperformance seen over the past two years, prices could approach $6,900 per ounce.

What It Means for Investors

Deutsche Bank’s outlook underscores continued optimism in the precious metals complex, particularly for silver as both an industrial and investment asset.

While volatility remains a feature of commodity markets, tightening supply signals, improving sentiment, and favorable relative performance metrics suggest that silver could be positioned for further gains heading into year-end.

Whether silver ultimately reaches the $100 level may depend on broader macroeconomic conditions, including interest rate trends, dollar strength, and global industrial demand.

For now, Deutsche Bank sees momentum building, and upside risks outweighing downside concerns.