UBS lowers its silver price forecast, expecting the supply gap to shrink to 60 million ounces by 2026

According to a report by a strategist at UBS Group, the silver supply gap will significantly narrow due to weakened investment demand, softer industrial consumption, and increased mineral supply. UBS expects a 50 million ounce decrease in photovoltaic demand by 2026, with ETF holdings dropping to 794 million ounces and net speculative futures positions slightly above 100 million ounces. The expected investment demand for the whole year has been lowered from 400 million ounces to 300 million ounces. The silver price forecast has been lowered to $85 per ounce in the second quarter of 2026, with a target price of $80 by the end of the year. UBS expects the supply gap to shrink to 60-70 million ounces in 2026 and has lowered its price outlook for all time periods.