Silver

18 September 2026, 14:37 UTC Chief Investment Office GWM Investment Research

Benefiting from gold, underpinned by electrification CIO View: Silver Dominic Schnider, CFA, CAIA, Strategist, UBS Switzerland AG

Silver (USD/oz) • Silver continues to track gold closely, with the gold-silver correlation Forecasts Spot near multi-year highs. We expect the metal to benefit from gold’s 18 Sep 26 66.5 supportive backdrop, including fiscal concerns, and longer-term risks to the US dollar. Dec 26 70.0 Mar 27 75.0 • Industrial demand remains structurally supportive despite substitution and thrifting in solar applications. Growth in data centers, AI Jun 27 75.0 infrastructure, grid investment, and electric vehicles should help Sep 27 80.0 offset this pressure. Source: Bloomberg Finance, UBS; Note: Forecasts refer to end of period. • We see limited scope for a sustained rise in the gold-silver ratio above 70x and would use periods of price weakness to build exposure. Silver highly correlated to gold

Although silver’s industrial characteristics often attract investor attention, recent price action has once again highlighted that the metal primarily trades as a higher-beta version of gold. The correlation between the two metals remains elevated, with silver influenced by many of the same factors as gold, including shifts in real interest rates, the US dollar, and geopolitical risk. In the near term, a more hawkish Federal Reserve and the possibility of further rate hikes pose headwinds. Over the longer term, however, we expect higher gold prices, alongside solid investment and industrial demand, to support silver.

Source: Bloomberg, UBS Beyond investment demand, silver continues to benefit from several structural industrial trends. While solar demand faces pressure from high silver prices and efforts to substitute or reduce the metal’s use, consumption in other sectors remains robust. Expanding investment in artificial intelligence, data centers, digitalization, grid upgrades, and electric vehicles should continue to underpin industrial demand. Supply growth also remains constrained because most silver is produced as a by-product of lead, zinc, copper, and gold mining, limiting the industry’s ability to respond quickly to higher prices. At the same time, investor demand should benefit from persistent fiscal concerns, questions about the US dollar’s long-term purchasing power, and expectations that monetary policy will become less restrictive over time.

From an investment perspective, we continue to favor accumulating silver during price pullbacks rather than chasing short-term rallies. Key risks to our constructive outlook include a more hawkish monetary policy path, a significant deterioration in global growth, and a sharper-than-expected decline in industrial demand. Nevertheless, we believe the balance of risks remains tilted toward higher silver prices over the medium term.

This report has been prepared by UBS Switzerland AG. Please see important disclaimers and disclosures that begin on page 2.

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