$80 Forecast for Silver Prices from UBS

Switzerland-based global finance giant UBS predicted that silver prices will continue their strong upward momentum in the coming period. Stating that long-term concerns about the US Dollar, uncertainties in the financial outlook and vibrant investment demand will continue to support silver, the bank stated that the price of ounce silver could reach the level of 80 dollars by September 2027. It was noted that new generation technologies such as artificial intelligence and electric vehicles also create a new wave of demand.

The bank's projections point to the expectation of a gradual rise in silver. Accordingly, the targets for ounce silver are listed as $70 in December 2026, $75 in March 2027, $75 in June 2027 and $80 in September 2027.

Silver was trading at approximately $66.50 per ounce as of September 18.

UBS strategist Dominic Schnider pointed out that the correlation between gold and silver is approaching the high levels of recent years. Stating that silver has dynamics specific to the industrial metal, recent price movements largely follow the course of gold, Schnider described silver as "a higher beta version of gold."

One of the most important short-term risks to the outlook for silver is the monetary policy of the US Federal Reserve. UBS states that a more hawkish Fed stance and interest rate increases may put pressure on the precious metal.

However, it is evaluated that higher gold prices and strong investment demand may limit this pressure in the medium and long term.

In the solar energy sector, which is one of the important sources of silver demand, manufacturers' tendency to use less silver to produce the same amount of energy creates a downward factor in terms of demand.

However, UBS points out that areas such as data centers, artificial intelligence infrastructure, investments in electricity grids and electric vehicles can create new and strong sources of demand for silver. Growth in these sectors is expected to partially offset the loss of demand that may result from solar energy.

One of the factors supporting the price outlook in silver is the structural limitations on the supply side. A significant portion of global silver production is not obtained directly from silver mines, but as a by-product of lead, zinc, copper and gold mining.

For this reason, even if silver prices rise, it does not seem easy for mining companies to increase production in a short time and provide a significant amount of additional supply to the market.

UBS assesses that there is limited room for the gold-silver ratio to sustainably rise above 70. The main risks that may threaten the bank's positive outlook on silver prices are listed as more hawkish monetary policy, a significant slowdown in global economic growth, and a sharper than expected decline in industrial demand.

Despite this, UBS's assessment is based on the expectation that risks to silver prices are upward in the medium term.