Silver Prices Set to Rally by 20% in the Next 12 Months: UBS Report
Silver continues to shine as an attractive asset for investors, with UBS analysts predicting a significant rally of nearly 20% over the next year. This surge is driven by a combination of factors, including monetary easing, industrial demand recovery, and growing investor interest through ETFs.
Currently trading around USD 32/oz, silver is supported by global monetary policy easing and a weaker US dollar. The recent rate cut by the Federal Reserve has boosted market confidence in further declines in real rates, which is expected to fuel economic growth and increase industrial demand for silver.
UBS forecasts that silver could reach $36-38/oz by next year, propelled by the broader recovery in global manufacturing and China’s stimulus measures aimed at reviving its economy. However, the analysts caution that risks such as unexpected economic data or unsuccessful stimulus measures in China could challenge this bullish outlook.
In conclusion, the outlook for silver prices is optimistic, with the potential for a significant rally in the coming months. Investors should keep an eye on key factors like central bank policies, industrial demand, and economic data to make informed decisions about their silver investments.