Analysts at UBS reckon silver is on track to 'approach' its previous record highs, with the Swiss bank forecasting the metal can reach US$55.00 per ounce by mid-2026.
'Overdrive' was the title of the bullish UBS broker note, which said silver has been lifted by broad-based strength in precious metals, rising investment demand, and expectations of a weaker US dollar. With option volatility elevated and ETF inflows climbing,
“We continue to prefer a long position in silver, viewing pullbacks as opportunities to add exposure,” UBS said.
The silver price is currently around US$48.60 per ounce, and UBS expects holdings in silver-backed ETFs to return to highs of 1,021 million ounces, up from 822 million currently.
Despite silver lacking the central bank support seen in gold, UBS sees scope for a revaluation as macro conditions favour further price momentum.
Analysts meanwhile, noted silver’s industrial demand, particularly from electronics and solar applications, as an ongoing supportive factor.
UBS maintains a six-month bullish view on silver and views elevated volatility as an opportunity to sell downside risk while maintaining exposure.