UBS Global Wealth Management expects silver to face near-term turbulence but sees prices reaching $80 an ounce by late 2027. The bank points to AI infrastructure demand and persistent supply deficits, while naming central bank rate hikes, a sharper economic slowdown and faster industrial substitution as the main risks.
UBS Global Wealth Management sees silver reaching $80 an ounce by late 2027, even as central bank monetary policy pressure weighs on the metal in the near term. The forecast comes in a report from the bank's Chief Investment Office.
UBS maps a path from $55.90 to $80.00
Strategist Giovanni Staunovo noted that silver has come under renewed selling pressure, but that the medium-term backdrop remains constructive. UBS targets a rise from a spot price of $55.90 an ounce on Oct. 22 to $70.00 by December 2026, then $75.00 through mid-2027 and $80.00 by September 2027.
Staunovo says the metal continues to track gold as a higher-beta asset. According to Staunovo, "Silver continues to behave like a higher-beta version of gold". He warns that shifts in real interest rates, U.S. dollar strength and monetary tightening will keep triggering sharp price swings.
AI demand offsets solar thrifting
Demand is diverging across end-markets. Elevated prices have accelerated substitution and thrifting in solar, and the Silver Institute forecasts an approximate 2% contraction in total industrial fabrication demand for 2026.
However, growth in data center expansion, AI hardware, electrical grid investments and automotive electronics is counterbalancing that drag.
Rigid mine supply keeps the market in deficit
On the supply side, recycling flows have increased as prices rose, but mine output growth remains rigid. Most silver is extracted as a byproduct of lead, zinc, copper and gold mining, so miners face structural constraints in ramping up output. As a result, UBS projects a sixth consecutive annual deficit for the global silver market in 2026.
UBS advises investors to take a selective approach, using pullbacks driven by interest rate expectations to build exposure rather than chasing rallies. The bank names prolonged central bank rate hikes, a sharper global economic slowdown and faster industrial substitution as the primary downside risks to its forecast.
Source: Investing.com
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