Silver Price Suffers Short-Term Loss Amid Ongoing Demand Growth
UBS remains bullish on silver despite its recent price drop to $64.47, down 4.33% from Tuesday's gain. The bank keeps its target of $80 per ounce, which is 24% higher than current prices.
Silver benefits from two sources of demand: investors responding to fiscal concerns and industries investing in electrification. UBS strategist Dominic Schnider recommends a patient approach, favoring accumulation during price pullbacks rather than chasing short-term rallies.
The bank sees growth in data centers, AI infrastructure, grid investment, and electric vehicles offsetting pressure from solar manufacturers reducing silver consumption or finding substitutes. Supply cannot respond quickly due to most silver emerging as a by-product of mining other metals.