Silver has been identified by UBS as a promising investment opportunity due to its potential for growth and its ability to benefit from economic growth and industrial demand.
Silver offers a unique advantage by catering to both defensive and growth-driven demand. It is often seen as a safe haven investment, but its versatility in various sectors, such as technology and medical devices, enhances its attractiveness as an investment.
UBS investment writer Julian Wee suggests that investors should consider adding silver to their portfolios alongside gold. Wee's analysis projects that silver prices could rise to between $36 and $38 per ounce by 2025, and the anticipated decline in the gold-silver price ratio suggests that silver is poised for outperformance.
The current economic landscape, characterized by potential ongoing GDP growth, positions silver favorably as it can capitalize on both defensive strategies and growth opportunities. The demand for silver in industrial applications further solidifies its role as a critical component in a diversified investment portfolio.
Overall, UBS's insights highlight the importance of considering a broader range of assets, with silver offering unique attributes and growth potential.