Silver Prices Suffer Sharp Decline as Volatility Returns

Silver prices have been volatile in September, with a significant decline from August's rally. Despite Tuesday's rebound, the price slipped 0.50% to $61.25 an ounce on Wednesday morning, following Monday's 4.59% fall. The silver price has lost 7.57% in September after gaining 15.48% in August.

UBS had forecasted a recovery to $70 by December 2026, followed by $75 in March and June 2027, and $80 in September. However, these projections were made before Monday's selloff, and the potential gain reflects a lower starting price rather than an upgraded forecast.

Goldman Sachs warns that trade policy could amplify silver's volatility due to slow supply response. Daan Struyven, co-head of commodities research at Goldman, states that implementing tariffs is unlikely to create new critical mineral supplies because mines and smelters take far longer to build than tariffs take to change.