UBS Forecasts Silver Price at $80 by September 2027
UBS projects silver to reach $80 per ounce by late 2027 despite a 19% drop in solar demand.
Key points
- UBS forecasts silver will hit $80 per ounce by September 2027.
- Solar industry demand is projected to fall by 19% in 2026.
- Silver correlation with gold is near a multi-year high.
UBS expects silver to reach $80 per ounce by September 2027. This target follows a projected climb to $70 by December 2026.
Front-month contracts closed last Friday at $66.78. The metal remains 45% below its January peak of $121.78.
Silver Tracks Gold Movements
The correlation between silver and gold sits near a multi-year high. Silver now acts as a volatile proxy for the yellow metal.
UBS sees little room for the gold-silver ratio to exceed 70. Traders should use weakness to build positions gradually.
Solar Industry Cuts Metal Use
The Silver Institute projects a 19% drop in solar demand for 2026. Manufacturers are reducing the amount of silver per module.
LONGi began mass production of copper-based cells in the second quarter. Competitors Jinko and Aiko are pushing similar substitution technologies.
Data Centers Offset Solar Losses
UBS argues that data center construction offsets the solar drag. Artificial intelligence and grid expansion are filling the industrial gap.
Registered COMEX stock stands at 99.4 million ounces. Another 238.7 million ounces are classified as eligible for delivery.
