UBS's financial market research report on November 7, 2024 stated that although gold is still the preferred asset for investors to combat various risks, the economic outlook from 'soft landing' to 'no landing' heralds defense and The balance between economic growth should be strengthened. The report pointed out that silver prices have historically been highly correlated with gold prices and are better positioned to benefit from growing industrial demand.
The report stated that gold is not the only precious metal that is inversely related to risk appetite. With U.S. GDP growth strong, investors can consider increasing their holdings of silver to benefit from stronger economic growth while remaining defensive.
UBS recommends allocating 5-8% to gold in an investment portfolio and expects gold prices to rise to $2,900 an ounce by September 2025. The report also recommends that investors hold silver for the long term and predicts that the price of silver will reach $36 to $38 per ounce in 2025.
The report pointed out that silver has strong investment potential and will benefit from spillover demand from the metal market, and believes that silver has advantages over gold in terms of economic growth and industrial demand. The report predicts that silver prices will rise as industrial demand grows, especially as demand continues to rise in the technology and electric vehicle industries, the manufacturing of LED and solar panels, and applications for silver's antibacterial properties.
Analyst InvestingHaven is more optimistic about silver prices, believing that silver prices will reach US$50 per ounce in 2025, hit a new high between 2026 and 2027, reach US$77 by 2028, and even exceed US$82 in 2030. The report pointed out five major supporting factors, including gold entering a confirmed long-term bull market, the upward trend of inflation expectations remaining, the euro/dollar exchange rate not falling sharply, the short positions in the silver futures market not being excessively concentrated, and the demand for physical silver surging.