UBS Encourages Investors to Buy Silver Amid Market Uncertainty
Published: April 9, 2025
In a recent analysis, UBS has reiterated its positive outlook on silver, urging investors to consider purchasing the precious metal at its current price levels. According to a report from Investing.com, silver prices have recently dipped below $30 per ounce, sparking concerns in the market. However, UBS strategists remain confident that this downward trend is unlikely to persist over the next few months.
Market Conditions and Silver Price Projections
UBS strategists Dominic Schnider and Wayne Gordon predict a price rebound for silver, forecasting it could trade between $36 and $38 per ounce in the latter half of 2025. This optimism comes despite the metal’s current struggles, which they attribute largely to a risk-averse sentiment prevailing in global markets. This sentiment has been influenced by U.S. President Donald Trump’s trade policies, prompting significant corrections across equities.
Schnider and Gordon noted that the current landscape draws parallels to prior market downturns, specifically during the global financial crisis and the COVID-19 pandemic, when silver saw similar price dips and an increase in the gold-silver ratio. However, they caution against making too many comparisons, asserting that the anticipated economic headwinds are unlikely to be of the same severity.
Expected Demand and Economic Signals
The UBS strategists foresee a rise in investment demand for silver that could counterbalance the impacts of current market volatility. A key factor in this outlook is the expectation that the Federal Reserve may implement further rate cuts, likely dropping below the projected range of 3-3.25%. Such monetary policy adjustments are seen as favorable for silver, potentially supporting prices and stabilizing the silver futures market.
Additionally, UBS points to more stable flows in exchange-traded funds (ETFs) as a positive indicator for sustained investor interest in silver. Recent trends show a muted increase in the metal’s option volatility, contributing to a favorable investment climate.
Encouragement to Invest
Given these considerations, UBS has positioned itself as a proponent of long-term investment in silver. They recommend that investors take advantage of the current pricing, which they view as attractive, anticipating upward price movement driven by decreasing opportunity costs and a possible weakening of the U.S. dollar.
In summary, UBS stands firm on its belief that silver offers substantial potential, encouraging investors to buy at present levels as conditions appear favorable for recovery and growth in the precious metal’s value.
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