UBS analysts suggest that silver stands as the precious white metal with the greatest potential to capitalize on gold’s ongoing rally.
Silver has recently achieved five-year highs against the pound sterling, exceeding £22 per ounce, though it hasn’t reached the all-time highs that gold has. More gains might be on the horizon.
UBS analysts noted, “Early in the second quarter, silver began to draw attention following gold’s unyielding climb to unprecedented highs.
Many investors, surprised by the rapid rise and extent of gold’s increase, are turning to silver as an opportunity to catch up. We believe the stage is still set for more, as silver’s performance so far this year is still modest when viewed against its historical trends.”
The demand for silver is poised to grow, driven by investment demand and its use in green technologies, according to UBS.
This growth could also be fueled by a broader appetite for risk following interest rate cuts. Furthermore, heightened market volatility is expected to draw more active investment.
Regarding the other two white metals, UBS observes that platinum still requires time for the market to adjust to current inventories, while palladium is expected to achieve greater stability after experiencing significant declines in recent years.
