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UBS projects silver to outperform gold as growth asset in 2025

UBS projects silver to outperform gold as growth asset in 2025

GrafaGrafa2024/11/06 11:00
By:Mahathir Bayena

UBS has highlighted silver’s potential to surpass gold, driven by industrial demand and resilient U.S. economic growth.

In a note published Monday, UBS investment writer Julian Wee emphasised silver’s dual appeal as both a defensive asset and a growth opportunity.

“Gold is not the only precious metal whose price demonstrates an inverse relationship to risk aversion,” pointed out Wee, noting that while gold has surged 35% year-to-date as a popular defensive hedge against inflation and economic downturns.

Wee projected gold’s price could reach $2,900 per ounce by September 2025, sustained by demand from Asian central banks and North American ETF inflows.

However, he advised investors to diversify with silver, citing its potential for higher returns amid economic growth.

"Investors might do well to consider an addition to portfolios that retains a good amount of defensiveness, while also incrementally adding to the ability of these portfolios to benefit from stronger economic growth: silver," he noted.

Wee anticipates silver will rise to $36–$38 per ounce by 2025, suggesting it could offer both portfolio stability and growth as demand from sectors such as technology, electric vehicles, and medical devices continues to climb.

He also expects the gold-silver price ratio to decline from 84 to the mid-70s over the next year, signaling potential outperformance for silver.

According to UBS, this dual hedge and growth potential positions silver as a valuable asset for investors seeking a balanced approach to risk and returns.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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