UBS expects silver prices to remain closely linked to gold and forecasts the metal reaching $80 per ounce by September 2027, citing investment demand, industrial consumption and constraints on supply growth.
Strategist Dominic Schnider said silver has continued to move in line with gold, with the correlation between the two precious metals near multi-year highs.
“Silver continues to track gold closely, with the gold-silver correlation near multi-year highs,” Schnider said in a note.
While silver also has significant industrial applications, the strategist said recent trading patterns indicate that the metal has primarily behaved as “a higher-beta version of gold.”
UBS Forecasts Silver at $70 by December 2026
UBS forecasts silver reaching $70 per ounce by December 2026, followed by $75 in March and June 2027 and $80 by September 2027.
The projections compare with a spot price of $66.50 as of September 18.
In the near term, Schnider identified the prospect of a more hawkish Federal Reserve and further interest-rate increases as potential headwinds for silver.
Over a longer period, however, UBS expects higher gold prices, investment demand and industrial consumption to support silver prices.
The price targets represent UBS forecasts and do not establish future silver prices.
Industrial Demand Remains Part of UBS Outlook
Schnider said silver consumption “remains structurally supportive despite substitution and thrifting in solar applications.”
Higher silver prices have increased incentives for solar manufacturers to reduce the amount of the metal used in their products, according to the strategist.
However, UBS expects demand associated with data centres, artificial intelligence infrastructure, electricity-grid investment and electric vehicles to help offset pressure from reduced silver usage in solar applications.
These expectations depend on future industrial activity and technology-related demand and may differ from actual consumption.
Silver Supply Growth Remains Constrained
UBS also cited the structure of silver production as part of its outlook.
A large proportion of global silver production is generated as a byproduct of mining other metals, including lead, zinc, copper and gold. Schnider said this limits the industry’s ability to increase silver supply quickly in response to higher prices.
The strategist also said he sees “limited scope for a sustained rise in the gold-silver ratio above 70x.”
UBS expects investor demand for silver to remain supported by fiscal concerns, questions about the long-term purchasing power of the U.S. dollar and expectations that monetary policy could become less restrictive over time.
UBS Identifies Risks to Silver Forecast
The bank identified several factors that could affect its outlook, including a more hawkish monetary-policy path, a significant deterioration in global economic growth and a larger-than-expected decline in industrial demand.
Despite those risks, Schnider said “the balance of risks remains tilted toward higher silver prices over the medium term.”
The statement represents UBS’s market assessment rather than a guarantee of future price performance. Silver prices remain exposed to changes in interest rates, currency markets, industrial demand, investment flows and global economic conditions.