UBS Sees Silver Prices Surging with Gold's Supportive Backdrop

UBS analysts expect silver to benefit from the same factors supporting gold, including fiscal concerns and potential risks to the US dollar. According to strategist Dominic Schnider, silver continues to track gold closely, with recent price action showing it primarily trading as a 'higher-beta version of gold.'

Schnider notes that despite silver's industrial characteristics, its price is influenced by investment demand rather than just industrial needs. He forecasts silver reaching $70 per ounce by December 2026, $75 by March and June 2027, and $80 by September 2027.

The strategist identifies limited scope for a sustained rise in the gold-silver ratio above 70x and recommends using periods of price weakness to build exposure rather than chasing short-term rallies. He believes the balance of risks remains tilted toward higher silver prices over the medium term, citing persistent fiscal concerns and expectations for less restrictive monetary policy.