Silver has climbed to $42 an ounce, marking a 14-year high, as investors flock to the metal alongside gold’s record performance.
Following the rise, UBS has updated its projections, forecasting that silver could hit new all-time highs. The bank now anticipates silver reaching $44 an ounce by the end of 2025 and climbing to $47 by mid-2026, reflecting its upgraded outlook on gold as well.
“We flag that silver prices could reach an all-time high—a view that supports a long position in the metal or selling its downside risk for yield enhancement,” strategists Dominic Schnider and Wayne Gordon said in a note.
The rally is occurring even amid muted global industrial activity, as macroeconomic factors such as geopolitical tensions, U.S. fiscal deficits, slowing economic growth, and potential Federal Reserve rate cuts are driving investor interest.
Silver’s strong correlation with gold—generally ranging between 0.5 and 1.0—has amplified these gains. ETF inflows underscore this trend, with silver-backed funds adding over 20 million ounces this quarter, pushing the year-to-date total close to 80 million ounces. Despite this, holdings remain roughly 200 million ounces below the peak seen during the pandemic in 2021.
Looking forward, UBS expects silver to benefit further as monetary policy eases and the market anticipates a cyclical recovery. The strategists also project the gold-silver ratio will move toward 80, which would favor silver’s relative performance.
They warned, however, that silver’s volatility is roughly double that of gold. Price drops of 15% or more “can occur rapidly, even in a bull market,” they noted, emphasizing that investors need elevated risk tolerance to hold the metal.
“With lower rates, a softening global economy, and ongoing fiscal deficits, investor interest in precious metals remains strong,” UBS concluded, noting that these conditions are unlikely to reverse soon.
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