UBS Sees Silver Prices Soaring to $80 by 2027 Amid Fiscal Concerns
UBS, a leading financial institution, has reaffirmed its bullish stance on silver prices. The bank's strategist, Dominic Schnider, pointed out that silver continues to track gold closely, with the gold-silver correlation near multi-year highs.
Schnider emphasized that despite silver's industrial characteristics, it primarily trades as 'a higher-beta version of gold.' This means that silver tends to move in tandem with gold, albeit with greater volatility. In fact, UBS forecasts silver reaching $70 per ounce by December 2026, $75 by March and June 2027, and $80 by September 2027.
The bank cited several factors supporting its constructive outlook on silver prices. These include persistent fiscal concerns, questions about the US dollar's long-term purchasing power, and expectations for less restrictive monetary policy over time. Additionally, Schnider noted that supply growth remains constrained due to most silver being produced as a byproduct of lead, zinc, copper, and gold mining.
However, UBS cautioned that key risks to its outlook include a more hawkish monetary policy path, a significant deterioration in global growth, and a sharper-than-expected decline in industrial demand. Schnider recommended using periods of price weakness to build exposure rather than chasing short-term rallies.