UBS has raised its silver price forecasts, arguing that the metal is consolidating before “the next leg up.”
Dominic Schnider, strategist at UBS Switzerland, said silver has been trading near the USD 50 per ounce range in recent weeks. He added that the bank now sees “room for further upside in the year ahead,” supported by strong investment demand.
UBS lifted its silver projections by “USD 5–8 per ounce” and now expects the metal to reach USD 60 per ounce in 2026. Schnider also noted that a temporary spike toward USD 65 per ounce is possible, though the bank does not expect such levels to hold.
The bank reiterated its bullish view, saying it “favors being long silver” and would look to increase exposure in the “USD 47–50 per ounce range.”
Silver prices have jumped 86% this year, helped by heavy investment inflows and strong industrial demand.
UBS believes the main drivers for higher prices remain in place. These include “lower nominal and real interest rates, persistent deficit concerns, and the potential for more U.S. dollar weakness.”
The bank also expects industrial demand to grow in 2026, supported by increased activity in the second half of the year. However, it warned that high prices could increase the risk of substitution in some industries.
UBS also cautioned that silver may reach its peak next year. Schnider said the bank expects “a peak in silver prices in 2026,” reflected in its December 2026 forecast of USD 57 per ounce. He noted that silver has “already rallied substantially—well beyond initial expectations.”
UBS forecasts demand to rise slightly to 1.34 billion ounces in 2026, while supply increases modestly, leaving a deficit of around 293 million ounces.
With gold projected to rise to USD 4,500 per ounce, UBS estimates a gold-silver ratio of 75. This ratio implies silver at roughly USD 60 per ounce.
