UBS 2025 Precious Metals Outlook: Silver’s Turn

Rationale Revealed

Contents: (3,000 words, 12 slides)

1. Key Points

2. Our view

3. Taking stock

4. Gold: Hedges more important than ever

5. Silver should outperform

6. Platinum and palladium likely to lag gold and silver again

7. Additional Silver Comment: Up Year 2025?

2025 UBS Precious Metals Outlook

Key Points

• Last year, gold and silver posted their strongest annual gains since 2020 despite a selloff following Donald Trump’s US election victory. Platinum and palladium lagged, finishing 2024 in negative territory.

• A stronger USD and elevated US yields will likely remain 1H25 headwinds but should be more than offset by demand for gold as a diversifier. A nascent recovery in global industrial production should support silver and, to a lesser degree, platinum and palladium in 2025.

• We remain long gold in our global strategy with a target of USD 2,850/oz, and like to sell downside price risks in silver ahead of opportunities to be long outright (as gold rallies). For platinum group metals, our strategy of choice is selling the price downside in platinum.

Plus: Why UBS is now loving the Silver so much this year versus last year. Their reasons also check out statistically.