Price Decline Only Temporary in Nature
The erratic trade and tariff policies of the US government continue to lead to major fluctuations in the markets. While many experts, with good reason, recommend gold for hedging, the Swiss major bank UBS also advises buying silver
UBS analysts believe that silver will rise significantly in price in the coming months – despite recent setbacks. They are convinced that it is unlikely that the silver price will remain below the $30 per ounce mark for long in the next three to six months. UBS even sees the possibility that the so-called little brother of gold could rise to $38 per ounce in the second half of 2025.
The experts attribute the recent decline in silver prices to a general risk aversion in global markets, triggered by US President Donald Trump’s trade policy, which led to noticeable losses on the stock exchanges. However, UBS expects that this setback in the silver price will be only short-lived and not as lasting as during the COVID-19 pandemic.
As possible factors that could lead to higher silver prices, UBS cites the ongoing investment demand and the likelihood that the US Federal Reserve will make further interest rate cuts. A weaker US dollar will also reduce the holding costs for silver, thereby increasing the attractiveness of the precious metal for investors.
