Silver price has returned to around $66 after a brutal correction erased more than half its value earlier this year. The metal reached an all time high near $121 in January before collapsing toward $55 during mid July. That low now looks increasingly important as silver pushes back into the $60 range.
David Morgan believes the silver price has probably established its bottom and confirmed a technical breakout. However, the precious metals analyst has not completely dismissed another sudden decline during August. His outlook combines technical confirmation, rising industrial consumption, limited available supply, and continued weaknesses within the global monetary system.
Silver’s path through 2026 has tested even its strongest supporters. The metal dropped from approximately $121 in January to around $55 during mid July. That decline represented a loss of roughly 55% from the all time high.
Silver price eventually recovered and returned to the $60 range during early August. The metal now trades close to $66, which places it about 20% above its July bottom. However, it remains roughly 45% below the January record.
The key silver price figures provide a clearer view of the recovery:
- Silver reached its all time high near $121 during January.
- The metal fell toward $55 during mid July.
- Silver returned to the $60 range during early August.
- The current silver price stands near $66.
Morgan believes prices below $60 offered an unusually attractive opportunity within the wider silver market. He also considers gold below $4,000 attractive from a broader perspective.
🚨For Silver… “Anything Under $60 Silver Was A GIFT!” — David Morgan!👀
— International Stacker (@IntlStacker) August 12, 2026
👉The Silver Guru @silverguru22 believes silver has likely BOTTOMED — & says his own technical breakout rule has now been triggered!🚀
🔥“Anything under $60 was… a gift in the silver market.”
👉And he… pic.twitter.com/bSofv8Ss4X
What you'll learn 👉
David Morgan’s Technical Rule Confirms the Silver Price Breakout
Morgan’s confidence comes partly from a technical rule he uses to confirm breakouts. His method requires several conditions before a price move qualifies:
- Silver must cross above a horizontal resistance line.
- Price must remain above that level for 3 consecutive days.
- Trading volume must stay above average during those sessions.
Silver has now met those conditions. Morgan therefore considers the breakout confirmed under his technical framework, although he acknowledges that any market forecast can fail.
The technical confirmation supports the view that the July low may have marked the bottom. Silver price still needs to hold above its reclaimed resistance area before that case becomes stronger.
David Morgan Warns That August Could Produce One Final Silver Price Flush
Morgan believes the bottom has probably formed, but his outlook includes an important warning. Silver could still record one rapid downward flush before the recovery continues.
August has often produced seasonal lows across precious metals markets. That historical tendency leaves room for another brief decline, even after the recent breakout confirmation.
Some previous forecasts placed the next silver price low around $54. Other projections called for a deeper collapse toward $40. Morgan considers a move to $40 highly unlikely under present conditions.
Heavy demand could emerge if silver returned to the $50 region. Morgan believes industrial buyers would probably use that level to secure additional supply. Strong purchase orders near $50 could therefore make a decline toward $40 difficult.
Morgan believes a deeper collapse would require several extreme conditions:
- A worldwide economic depression would weaken industrial demand.
- Copper could replace silver across more solar applications.
- Artificial intelligence data center development could disappoint expectations.
- Industrial users could reduce their silver purchase requirements.
Those circumstances remain possible, but Morgan considers them unlikely enough to make a $40 silver price difficult to support.
Industrial Silver Consumption Has Grown From 35% to 60%
Silver has something gold cannot fully match. Modern industries consume large amounts of the metal every year.
Morgan explained that industrial use has increased from approximately 35% to 60% during the past 25 years. Technology now consumes a large portion of the annual silver supply.
Annual silver supply consists of roughly 1 billion ounces:
- Mining contributes approximately 850 million ounces each year.
- Recycling supplies another 150 million ounces annually.
Gold receives steady demand from central banks. Silver receives its strongest support from industrial users, private investors, funds, and other market participants.
That difference gives both metals separate strengths. Gold benefits from formal monetary demand within the banking system. Silver benefits from an industrial market that removes physical supply through continued consumption.
Morgan remains bullish on both precious metals. However, he expects silver to outperform gold on a percentage basis before the current metals cycle ends.
Silver Deficits Matter More Because Available Supply Remains Limited
The silver market has recorded deficits before. Morgan noted that annual deficits continued from 1990 through 2005 without producing the price effect many expected.
Current conditions could prove different because global participation has grown. More investors, hedgers, speculators, and physical buyers now follow the silver market.
Above ground silver supply could total about 2 billion ounces, which appears substantial at first glance. The more useful question concerns how much of that metal is freely available for purchase.
Several factors reduce the amount available for sale:
- Large quantities already support exchange traded products.
- Private investors control substantial physical silver holdings.
- Some COMEX inventory belongs to owners who may not want to sell.
- Industrial users continue consuming part of the annual supply.
Morgan also pointed to stronger silver activity across Asia. New vaults, exchanges, futures markets, and industrial demand have expanded across Hong Kong, Shanghai, and other parts of the region.
Morgan Rejects Claims That COMEX Silver Is Already Being Drained
Morgan challenged claims that COMEX silver inventory is being completely emptied. Total COMEX holdings have increased considerably across the past 20 years, although the registered category can rise or fall over shorter periods.
Registered inventory represents metal available for delivery. Morgan has previously watched that category decline toward approximately 30 million ounces before fresh silver entered the system and lifted the total closer to 90 million ounces.
A decline below 30 million ounces would deserve close attention. However, even that event would not guarantee that new metal could not enter later.
Much of the silver transferred between banks never leaves COMEX vaults. Ownership certificates can change hands without the physical bars leaving storage. Morgan therefore prefers to track actual metal leaving the vault system instead of relying only on delivery notices.
The LBMA presents a different picture. Morgan believes freely available silver there has declined considerably because much of the inventory already supports exchange traded products and other existing obligations.
Continuous Silver Futures Trading Could Change Weekend Price Action
CME Group has announced plans to expand its 100 ounce silver futures to continuous trading throughout the week. The proposed launch date is September 11, 2026, subject to regulatory review.
🚨BREAKING: Silver Never Closes Again?! COMEX Just Took the Nuclear Option!👀
— International Stacker (@IntlStacker) August 11, 2026
👉CME Group just announced plans to expand trading on its 100-OZT Silver futures to:
🔥 24 hours a day
🔥 7 days a week
🔥 Including weekends
🚨Proposed start date: September 11, 2026 (pending… pic.twitter.com/pndsRmAPw8
Those contracts use financial settlement instead of physical delivery. Their final value comes from the daily settlement price of standard 5,000 ounce COMEX silver futures.
The proposed system could change how silver responds to weekend developments:
- Saturday geopolitical events could affect silver immediately.
- Sunday economic news could produce instant price movements.
- Asian market activity could influence prices without delay.
- Weekend access could increase paper market participation.
CME’s 100 ounce silver futures averaged 17,800 contracts daily during the first half of 2026. The wider CME silver futures market recorded roughly $50 billion in average daily notional value across that period.
Morgan accepts that silver can face manipulation over shorter periods. He pointed to spoofing, concentrated overnight selling, leveraged futures, and options activity as methods capable of moving silver price temporarily.
However, he does not believe those activities can control the broader direction forever. Industrial consumption, investment demand, physical availability, and monetary conditions eventually exert greater influence over the market.
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