New Delhi. There is a possibility of major changes in the market of global precious metals. In its recently released report, the International Banking Giant Citigroup has predicted a 13% increase in silver by 2025 and a fall of about 25% gold by 2026. This estimate indicates major changes in investment market and portfolio strategy.
Why will the price of silver increase?
According to Citigroup analysts, the global supply of silver is being reduced for a fifth consecutive year. According to the report, the demand in 2025 may reach 1.20 billion ounces, while the supply can be limited to 1.05 billion ounces. In the event of this supply-might, the trend of investors will move towards silver, due to which its price is scheduled to bounce. The city report states, “We believe that the availability of silver will be more strict due to the continuous deficit (deficit) years. Stockholders will now be ready to sell at high prices and the demand of investors will remain strong.”
Industrial demand is increasing the importance of silver
Silver is not only a monetary asset, but it also plays an important role in the industrial sector. Silver demand in areas such as solar energy, electronics, and electrification is increasing rapidly. Silver consumption in these areas is now more than half of the total global demand. This trend is expected to continue in the coming years, especially due to the increasing use of green energy and renewable technology.
Changes in gold-silver ratio
Gold-silver ratio, which indicates how much ounces of silver is needed to buy an ounce of gold, has also seen a big change. In January 2025, this ratio was at around 100, which has now fallen to 85. According to CITI, this change suggests that silver prices may rise further as the long-term average is around 70. Currently, the price of silver is around $ 38 per ounce, which has gained 3% in the last one month and 24% in the last one year. CITI has given short -term estimates $ 40 per ounce and long -term estimates $ 43 per ounce, which is considered possible in the next 6–12 months.
Why is the glow of gold faded?
On the other hand, Citigroup has presented a disappointing estimate of gold prices. The report said that by 2026, gold prices may fall by 25%. However, in early 2025, the price of gold was recorded by 27%, due to the purchase of central banks and ETF fund flow. But the upcoming quarters are less likely to fast. CITI’s leading analyst Max Layton reported that the price of gold will last some time above $ 3000 an ounce, but in the second part of 2026 it can decrease to $ 2500– $ 2700 an ounce.
What should investors do?
After the arrival of this report, the discussion among investors has intensified whether it will now be more beneficial to leave gold and invest in silver? According to CITI, it is not just a catch-up trade, but the strong fundamental aspects of silver are making it more attractive to long-term investment. Experts believe that gold dominance in the form of traditional ‘safe haven’ assets can now be challenging. Increasing steps towards industrial needs and green energy are setting silver as a new investment category.
Possible impact in the market
If CITI’s prediction is proved correct, then there will be a big change in investors’ strategies. Gold in traditional portfolio has been considered to be mainly risk -saving assets, but if its prices decline, this role may weaken. At the same time, the increasing demand for silver is bringing it forward in dual role (industrial and monetary). Due to this, the weight of silver in investment portfolio can be increased. In the period of 2025–2026, the future of silver looks bright, while the glow of gold may fade to some extent. However, the market of precious metals is affected by many global factors, so it will be necessary to seek expert advice before any investment. This report of Citragroup is an indicator for investors that a new strategy is needed in the changing times. If silver is preferred from traditional thinking, it can open a way of long -term profit. At the same time, those investing in gold need to be cautious in the coming time.
