UBS anticipates silver prices climbing to $36-$38 per ounce by 2025, driven by falling U.S. yields, robust industrial recovery, and stronger demand. Despite recent headwinds, the metal's dual role as precious and industrial could fuel its growth.
Silver Set to Rise in 2025 as UBS Highlights Industrial Recovery
According to Investing.com, silver prices are expected to increase in 2025, according to UBS, which is boosted by lower real rates in the United States and higher global industrial production. This is despite the fact that the metal is struggling to match the increases spurred by the central bank in gold.
Silver prices increased by more than twenty percent in 2024, but they have recently lost impetus as a result of increasing yields in the United States, a strong dollar, and growth concerns in global markets.
Speculative Activity and ETF Stabilization Mark Key Trends
With speculative short positions expanding and ETF holdings stabilizing following major outflows earlier this year, the metal is trading near its 200-day moving average. This represents a positive development for the market.
In spite of these difficulties, UBS continues to retain its positive stance, with a target price range of $36-$38 per ounce for the year 2025.
Yield Declines Could Spark Renewed Investor Interest
Although rising yields have been a disadvantage, a decrease in yields might potentially improve the desirability of silver.
There is a need for a shift toward cyclical commodities, which UBS anticipates will become more prevalent as the year 2025 progresses.
Dual Roles of Silver Highlight Its Market Potential
Despite the fact that silver's association with gold continues to be high, the fact that it also moves in tandem with industrial metals highlights the fact that it serves a dual purpose as both a precious metal and an industrial metal.
It is possible that silver will gain ground in comparison to gold, given that the gold-silver ratio is currently close to 88.4x. In the absence of an economic slump, UBS is of the opinion that a ratio that is greater than 90x cannot be maintained.
UBS emphasizes that higher gold prices offer underlying support to the silver market, despite the fact that central bank purchases do not provide support for silver.


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