Bank of America has once again shared an updated silver price forecast. However, this forecast has taken the markets by storm, predicting a $135 to $309 price for the metal to ascend in the near future. What is the reasoning behind such a stark silver price forecast predicted by one of the leading banking institutions? Let’s find out.

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Silver to $309?

The silver price is currently in a volatile stance, showing signs of oscillation from $80 to $75 and vice versa. As the US-Iran war continues to deliver support to the dollar, the metals have lately been having a tough time rising up the radar. In the middle of this, Bank of America has forecasted a rather shocking silver analysis, claiming that the asset can hit $135 to $309 by the end of 2026.

Bank of America’s reasoning behind this prediction is rather simple. Both the price targets are derived from the traditional gold-to-silver ratio analysis. At present, the ratio is at 59:1, making silver appear cheaper than gold. That being said, if this drops to new lows like before, it may eventually help silver secure $135 to $309 price marks in no time. In 2011, the metal tripled its price, with Bank Of America’s Widmer claiming how this setupof may be up for repetitions again.

“Widmer said silver may appeal more to investors willing to take higher risk for extra upside and noted that the current gold:silver ratio of around 59 suggests silver could still outperform gold. He cited the historical ratio low of 32 in 2011 as implying a silver price high of $135, while the 1980 low of 14 in the ratio suggests a silver price of $309 per ounce,” Kitco reported.

What Are Other Analysts Saying?

According to Rashad Hajiyev, silver price is currently eyeing a new fresh rate of $90 in the next few days. The metal is targeting a long-term price mark of $250 in the near future.

“The gold-to-silver ratio (GTS) is breaking down, and it has a long way to go. My minimum target for GTS by mid-summer is 30. With gold price above $7k, I expect a minimum $250 silver price…”

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