Silver prices have been hit by a more cautious stance (risk-off) among investors generally, especially with gold coming under pressure.
UBS is still a fan of the metal, as it should be a beneficiary of lower interest rates though it might be affected by more bouts of jitters in markets.
“With our view of lower US rates and the US$ peaking, investors stay long the metal.
“As for volatility-selling strategies, we think the recent pullback in prices can be used to sell the price downside risks in silver from USD 26/oz over the next three months.
“In other words, we favour selling the price downside for yield pickup.”
Shares in silver miner Fresnillo PLC (LSE:FRES) were flat at 574p.