Silver has joined gold in breaking new ground.
Prices have pushed above $42 an ounce, the highest in 14 years, fuelled by record gold levels and heavy investor inflows.
UBS now expects silver to reach $44–47 by mid-2026, in line with its upgraded gold forecast of $3,900 an ounce.
The bank’s strategists say silver should continue to benefit from the same macro forces that support gold: geopolitical tension, hefty US fiscal deficits, a softening economy, and the likelihood of further Federal Reserve rate cuts.
Historically, silver has moved in tandem with gold, with a correlation of 0.5–1.0. The link is visible in investment flows, with exchange-traded funds adding more than 20 million ounces of silver this quarter and nearly 80 million so far this year.
Even so, total ETF holdings remain more than 200 million ounces below the peak of 2021.
UBS expects silver to outperform gold as interest rates fall and industrial demand revives.
The ratio between the two metals, currently around 85, could drift toward 80 as investors look ahead to a stronger economic cycle in 2026.
That backdrop underpins the new silver forecasts of $44 for the end of this year and the first half of next, rising to $47 through the second half of 2026.
The drivers are not just top-down. Silver retains a dual character as both a precious and an industrial metal. Its role in solar panels and electronics means that any rebound in global manufacturing should reinforce its appeal.
For now, though, it is investor demand that is doing the heavy lifting.
There are caveats. UBS warns that silver has historically been about twice as volatile as gold. Price swings of 15% or more can occur even in a rising market, and higher levels nearly always depend on gold staying elevated.
The bank’s message is that holding silver can make sense in the current environment, but it requires a robust tolerance for risk.
With both metals enjoying strong inflows and supportive conditions, UBS believes the stage is set for silver to remain well bid.
In afternoon trading, an ounce of silver was changing hands for $41.36, up 0.3%.