Is BoA Going NET Long? Appears to be while Calling Out $309 per Ounce Silver.
Also: Perth Mint Runs out of Silver. UK Dealer paying 5% over spot. UK Bullion dealers out of Silver. US Dealers cancelling Silver orders. 10 ounce and Kilo Bars Sold out almost everywhere.
Bank of America has shifted from quietly managing large synthetic short exposures in silver to openly championing the metal, as U.S. bullion banks collectively flip net long on COMEX futures.
After years of suppressing price risk through shorts, the bank’s research desk now promotes silver’s tight supply, structural deficits, and leverage to green-energy demand, pushing aggressive upside targets into 2026
Bank of America’s Michael Widmer says silver could peak between about $135 and $309 per ounce, extrapolating from historical extremes in the gold–silver ratio during past bull markets.
Widmer’s $135–$309 silver peak comes primarily from applying historical low gold–silver ratios to BofA’s $5,000 gold target, assuming mean reversion and silver’s tendency to outperform in bull markets.
Ratio-based target
Widmer notes the current gold–silver ratio near 59:1 versus historical lows around 32:1 in 2011 and 14:1 in 1980.
Applying those low ratios to a possible $5,000 gold price implies silver between roughly $135 and $309 per ounce.
Dual demand drivers
Silver has both safe‑haven investment demand and large industrial use in photovoltaics and electronics.
BofA expects the green‑energy transition and a rebound in global manufacturing to lift industrial demand alongside financial demand.
Investment flow potential
Silver investment positioning is described as relatively modest compared with gold, leaving room for a large capital inflow if sentiment swings to precious metals.
Because silver’s market is smaller and more volatile, Widmer argues that new investment flows can trigger outsized price moves.
Supportive macro backdrop
BofA expects a broadly supportive environment for precious metals, with gold leading and silver historically accelerating later in the cycle.
The analysis ties this to a potential period of monetary easing and persistent inflation, conditions under which precious metals have tended to perform well.
What else is Going on?
Bullion Dealers
out of Silver or
Delaying Orders and/or
Cancelling Customer Silver Orders
The Royal Mint’s website showed zero silver availability, including its vaulted “Digi Silver,” meaning no coins, bars, or digital silver could be purchased at all during that visit, suggesting acute stock or systems issues in silver products
Perth Mint out of their Sovereign Kangaroo
Also in Australia
Look at these persistent lines outside ABC Bullion
Time 1:20PM AEDT
Australian Eastern Daylight Time (AEDT) is the easternmost time zone in Australia.
Date: Wed Jan 7, 2026
Video below
video by David Taylor, Twitter handle, @DaveTaylorNews
Later today we have news breaking on European Central Banks Piling into Silver