Eric Sepanek
SBC Founder
Eric Sepanek is the founder of Scottsdale Bullion & Coin, established in 2011. With extensive experience in the precious metals industry, he is dedicated to educating Americans on the wealth preservation power of gold and silver.
The world’s largest private bank is urging investors to stay long on silver as the metal looks primed for further growth. UBS analysts have raised their price targets, expecting the shiny metal to make double-digit gains within the next year. A tightening in the gold-to-silver ratio could push those returns even higher.
Despite a bullish outlook, the Swiss bank encourages investors to look for buying opportunities, highlighting pullbacks as chances to scoop up silver at cheaper prices. With rate cuts, a softening dollar, and robust silver demand lined up, prices have plenty of fuel to prolong the rally.
Fresh Forecasts Through 2026
Recently, UBS strategists raised their silver price predictions from a prior benchmark of $38/oz. The July rally propelled the shiny metal past a 14-year high and across the bank’s expectations. Although prices have been bogged down for a few months, struggling to squeeze past $40/oz, the Swiss bank anticipates higher movement ahead.
Now, analysts expect silver prices to hit $42/oz between Q4 2025 and Q1 2026. By the middle of next year, silver could reach $44/oz. This $6/oz swing in forecasting might not seem like a lot at first glance, but it represents a potential 15% price surge. These double-digit returns would add to silver’s impressive 25% run in the first half of the year. This is an incremental revision but reinforces the bank’s optimistic forecast.
$36/oz Marks the Strike Zone
Over the next 12 months, UBS sees a steady uptrend in silver prices, but the small precious metals market could still experience characteristic volatility. Strategists at the bank have highlighted the $35.30/oz to $36/oz range as a strike zone, urging investors to buy the dip at this level.
Technical analysts pinpoint these prices as key support levels based on silver’s performance over the past few months. In other words, if silver does pull back, it’s unlikely to fall below this gap, barring a significant reversal in momentum. Since the beginning of the year, the silver market has maintained a robust upward trend.
Ratio Compression Could Push $50
UBS maintains official silver targets of $42/oz to $44/oz over the next year. However, the bank’s strategists outline another scenario where prices may soar to $50/oz in the near term. Analysts build this case by pointing to the stretched gold-to-silver ratio.
This measurement of how many ounces of silver equals one ounce of gold has been near historic highs, suggesting a disconnect between the relative values of these two metals. Currently hovering around 90:1, UBS predicts the gap will narrow to 80:1 or 75:1.
If gold reaches the bank’s $3,700/oz aim, the math would place silver at $45/oz to $50/oz. That would represent around a 30% leap from current levels.
The Macro Drivers of Silver’s Rally
UBS analysts highlighted some of the main macroeconomic variables supporting their higher price forecast:
- Rate Cuts – Markets expect the Federal Reserve to resume interest rate cuts following a long pause, reducing the opportunity cost of owning physical assets such as gold.
- Soft Dollar – The dollar is falling right now due to a combination of sticky inflation, global de-dollarization, and trade uncertainty, boosting the gold’s appeal.
- Dual-Source Demand – Silver’s dual role as a safe-haven asset and industrial metal results in steady demand and steadier prices in various economic conditions.