UBS introduced a new long-term price target for silver, projecting a value of $38 per ounce for the first quarter of 2026. This target is an extension of the firm’s forecasts for the second half of 2025 and underscores UBS’s expectation for higher silver prices in the future.

The recent performance of silver has seen a significant retreat, with the precious metal relinquishing nearly half of its gains since the start of the year over a span of just a few days.

Despite this decline and a technical analysis that suggests weakness, UBS anticipates that gold will stabilize, providing a supportive backdrop for silver prices.

UBS points to recovering industrial application demand as a potential catalyst for increased investor interest in silver. The research firm notes that silver’s relative valuation compared to gold could eventually drive stronger investment.

However, UBS also acknowledges a major obstacle facing silver: the absence of central bank demand, which has historically been a key driver for the metal’s market.

In addition to its bullish outlook on silver prices, UBS recommends strategies for investors to capitalize on the metal’s potential upside.

Analysts also suggests selling the downside risk in silver as a means to yield pickup, which could be an attractive option for those looking to gain exposure to the metal while also seeking to generate returns.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.